I made a couple of ukuleles with a similar appearance at the heel/body join. Rather than a separate neck block, I just continued the neck inside the body and cut a rebate in the sides of the heel which I glued the sides to. So, conceptually like a Spanish heel but without slots to fit the sides into.
The neck extended about 3/4 inch into the body to form the neck block element.
Of course, I only had about 30lb of string tension to worry about, but there's a lot of glueing surface so I suspect it would hold up to steel strings OK. I think the challenge would be bracing the top so it didn't sink under tension at the upper bout/part (I guess it has no bouts!).
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