Battery relocation

If you see what I see in the drawing. The alternator is on the same lug as the battery. This would mean that power from the battery feeds to the lug and then continues on to the alternator un-impeded. There is no disconnect in that line of power.

Not sure how that would matter if the output from the alternator is disconnected from the ignition system. Which it looks to me like it is. If the alternator can't power the ignition, then the engine will stop running even if the alternator charges the battery until the motor stops.

I know the big issue is when the alternator can back feed the ignition and keep the motor running, but I don't see how the first schematic would do that.

The other issue might be that the power wire from the alternator is live until the motor dies, but now long can that be for?

But I'm no electrical genius so maybe I am missing something.