I would take the hardware cloth all the way to the top. Racoons are very good at figuring things out and they are relentless at getting in and killing for the fun of it. Cyclone fencing will slow them down considerably, but hardware cloth will all but stop them. I build coops/runs for a living, and have done a lot of research, and have had personal experience with these critters. Other than the things I have pointed out, the coop is great.