with the fan blowing over the element it should dissipate the heat and not glow red hot.
my thoughts on the heating element at the top is it heats indirectly and allows the moving air to be what warms the incubator, just above the element (especially if you have inadequate air flow) will be a hot spot when it's on which could cook eggs if it were placed at the bottom.
I understand what your saying, maybe a tin plate 6" over the element to allow the heat to be dispersed via air flow. How to mount the heating element? was thinking maybe coil it like a stove element or run it in an oval shape but how do I mount it so its not sitting on the bottom of the fridge.