First off, please take no offense, but I'm moving this thread to Electronics and Wiring since it concerns, ah, wiring . . . and is not really related to a discussion of pickups. No harm done, we just like to keep some modicum of organization around here.
Good job modifying the diagram. However, 2 points: First, your switch is shown schematically (and is correct), but since this is a diagram, at first blush it looked to me like a broken wire, not a switch. Better to diagram the physical switch itself.
More importantly, pat specifically requested the "Red Rhodes" coil split scheme, which uses a tone control, wired with all three lugs, to split the coils. With the tone at "10", one coil is split, as you turn to 8-9, you blend in the other coil, below about 8 you get the full HB and normal tone control operation.
JohnH has several different LP diagrams posted which use the Red Rhodes scheme, I'll have to dig one up to show you how it operates. The sweet thing about this mod is that there are no new parts to buy, it preserves the stock look, and it provides a bit of blending.
I think ill let somebody else modify that diagram as im not sure i get the concept yet, to me it looks likeyou could get a similar effect by putting a volume control where i have my switch, to choose how much of the signal to dump to ground. however im not sure why the cap is there