You have done a good job there. But the springs can also move sideways when the torch is closed. This does not matter at the tail, it would just turn on, but at the head it could short out. Clearances are small.
Hopefully the spring (or both springs) would fry and collapse. Which used to happen regularly with this thing.
Since I don’t have a recent one, I can’t advise on further measures. Problem is, that it has, I think, the standard 17mm BLF driver in a pill that would be ideal for 18650 cells. But they put it into a body sized for 26650 and failed to understand that there is a significant difference, particularly at the positive contact.
Also a pity that they don’t supply a 26650-18650 adapter.
I think that you have done a good job with the extra insulation.
Then there is the issue with the driver, which can get flaky at high current levels. I’ve not seen this myself, but it is real. Particularly if you decide to mod. it with e.g. spring by-passes and stronger LEDs. It was fixed in later BLF designs, and if you are very handy with a soldering iron you might manage to retro-fit the fix.
Finally, the brass pill is a weakness. It looks pretty and shiny, but brass is a very poor material thermally. and a screw-in pill is always a compromise.
Due to the zoomie head there is almost no thermal path to it, so it all has to go back into the body. So putting more powerful LEDs into this may stress the driver, and the thermal capability.
Plain Al alloy pill, or an integral design with no pill, just a shelf, would have been better.
The LED was also a poor choice even at the time, for a thing like this. Something with the best surface brightness would have worked much better, which is why you will see talk of modding with e.g. a de-domed XPG2. No doubt newer technology is better.
Still, the basics are all there, particularly the optics, and if you are prepared to do some work it is a great place to start experimenting. Definitely a bargain.