Yeah, you [pretty much nailed it. I'd run both the top and bottom bars of the cantilever inside of the transverse grade beam longitudinal bars. Do it for the top bars to eliminate a potential plane of weakness with no reinforcing. Do it for the bottom bars just because it looks right and is conventional. I don't think that any of this is really critical, however, given the loading situation.
A couple of other housekeeping items that you may well have already considered:
1) There is a demand for top steel anchorage in the cantilever tip that is analogous to bottom steel anchorage at the support in simple span beams. That might affect your bar sizes and/or anchorage detailing.
2) You may need hanger steel in the cantilever end to transfer shear from the grade beams tying in. Your tie-in loads may well be small enough that it's not an issue.
I like to debate structural engineering theory -- a lot. If I challenge you on something, know that I'm doing so because I respect your opinion enough to either change it or adopt it.