David~
One thing to think about is how much grass you want to carry on your boat - and what kind of grass you will be using. I like to use only as much grass as I need to cover everything up - mostly because it can get heavy when wet, especially late in the season.
I use Salt Hay (
Spartina patens) with the occasional bunch of Cord Grass (
S. alterniflora) mixed in. I found - though trial and error - that the optimal space between the bottom of the thatch rail and the deck was 3/16". If my spaces were 3/4" high, I'd need several times the volume of hay.
I do not lash the grass - just the tight fit and friction keep it where I put it - all season long, with hundreds of miles of highway trailering. I round over the upper corners of the rails with my router but not the inside corners. If you will instead be lashing bundles of grass to your rails, rounded corners and larger spaces are probably immaterial.
This is not a great photo but it shows my existing rails. I put the spacer blocks (I glue blocks on - and do not cut them out of a single piece) every 8 inches - primarily because the decks flex too much - which is the same reason I put the white oak up on edge and fastened with carriage bolts - to stiffen the deck from above.
I plan to replace the decks (next year?) and then make new thatch rails. I will make them out of cypress - because it's light, rot-resistant and holds paint well - and the width of the rails will be greater than the thickness (probably 1-1/4" x 3/4").
Hope this helps,
SJS