That's different. I used to wonder who thought of putting a condensor in the wheel wells like some kits do, but venting out, so long as it doesn't collect mud or rub the tire, seems like a decent idea. Looks like, as you said, it takes minimal space and comfortabily fit the spare.
In my ponderings, I'd envisioned a parallel flow condensor in various places. What you have seems small and may not have quite enough airflow at the back due to the angle. Then again, those squirel cages can move some air. Might be worth playing with deflectors...
Move it over and let us know how it works!