The only close encounters with other aircraft I have had have been on base to final. There were only two that were close enough to make a lasting impression on me. Both happened when teaching in high wing tandem trainers. In both cases I took the controls and steepened the descending turn to turn inside the centerline extended.
While high wing airplanes are popular trainers, it is difficult to see where we are going in a turn through a down wing. It is easier in a steep descending turn because front seaters can look up through the top of the windscreen. This blind turn problem is one of the reasons nearly all Ag planes are low wing.
Many more of my hours were either spraying or patrolling pipeline. While staying low and giving way to all other aircraft and avoiding the centerline extended on finals of less than one quarter mile, I had no close encounters with other aircraft.
There are many safety advantages of the steep descending, or finishing portion of the energy management turn. Better acquisition of the target I have already mentioned. The steep turn also has the high wing down blocking the target for a much shorter time.
A very important concern, in steep descending or energy management turns, is to use plenty of rudder. We need to push the nose around both to get it down and to complete the turn quickly. Holding back pressure to get steep turn is going to load the wing and become dangerous. Slipping turns (not enough rudder) take longer than coordinated turns and much longer than skidding turns (too much rudder.)
As an Ag instructor, I can guarantee you that most pilots let the nose drag around in a slip in steep turns. It is not their fault. They have been taught not to turn steeply and have little quality experience with steep energy management or descending turns.
I did get my tail drager cert in a Stearman and I think the instructor was trying to convey the tight turn, letting the nose fall with plenty of rudder technique you are discussing but I just don't think he was conveying it quite like you do.
