I thought the point was to get the PROFILE swept around the curve with a mitered corner. There does need to be compromise but at what expense? Having such distortions in the profile IMHO is not good and I would follow more of a path of what NX(and other CAD) do by averaging the intersections.
This is a very(very) quick example that is more to what I would expect, although of course there is still compromise.
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