It would appear to be the best option - I think you mean modifying the above to something like this:Going bigger wouldn't add much to the cost as it is the cutting and bends that have the biggest impact at these sizes, but I guess that the neater and probably cheaper option is the simple U type bracket with the timber packer and pinch bolt between the post and board.
Or the following would keep the clamp tucked inside the fence line out of harm - might even negate the need for the screws: