That's a great little setup! I agree with fishhead though, it's going to be difficult to get any real work done with that sitting there.
2) Open up the back of the canopy more to reduce the heat build up. I still might do this.
I think if I were you, I'd definitely do this. You really only need about an inch on either side in the back, so you could remove quite a bit, back there, and that would allow most of that heat to escape. I'd say start where your cable hole is and notch out from there all the way across at the same height.