It looks like that top articulation moves just fine.
Arm lames are pretty flat generally. Some seem completely flat, some seem mostly flat to me. They don't seem to have (generally) had the same design goals when making arms as legs.
I don't see a picture of the whole arm together, so I don't know what the whole thing does.
Mac talked about this at the Texas Hammerfest. The general goal is to get over 90 degrees of movement, but not really huge amounts. This is about what your arm really does when you are wearing the type of clothes that will be worn under armour.
Look at how much these bend:
http://www.allenantiques.com/A-186.html
http://www.allenantiques.com/A-27.html
http://www.allenantiques.com/A-171.html
http://www.allenantiques.com/A-172.html
Put the whole arm together, see how it compares.
Then make sure that the inner lames are the right size and shape to allow for the movement you have in the lames and not bash into the other part of the arm.
Generally then is the best time to make sure the wing is shaped correctly to fit with the rest of the arm. We talked about that too this weekend. I used my 16th c. arms as the example, but the idea is consistent for many arms. When the lames lock up, the wing should fit to the bent arm.
Wade