How would you tackle this?

Customer is getting a full roof replacement from Ins. There is a shingled roof that drains down to a ~8" wide MDF handrail for the balcony (builder put it this stuff all over a 12 year old home) which is now crumbling due to water exposure.

Homeowner plans to replace the handrails with a sealed hardwood of some sorts on his own and still requests water diversion. I am curious how you would take on diverting the water from the roof (a little is OK but not a lot like current).

I proposed installing a metal drip edge a few courses up (drawing depicted) but I realized this will be ugly and could cause issues with water intrusion.

Should we build a mini cricket? Re-work the diverter idea? Something else?

Also should the shingles still overlap the handrail when done? How should this be terminated here?

Your advice is MUCH appreciated!!