Thom,
Am I seeing the photo incorrectly? The incorrect scabbing aside for a minute ( I agree that it is incorrectly scabbed), it looks to me that the brace is under the bottom board of the splice so in effect the upper board of the splce is resting on the lower board which is braced. I would think that would in effect be bracing the upper board as well, or did I misunderstand your comment?
Eric