I agree with your style of coding, as it does look a little cleaner and seems that it would prevent the accidental use of global variables. The only concern I have with that is if I were to give the script to someone else with no programming knowledge, they'd have to sort through lines of code to make any necessary changes to variables. When the variables are up top, it's the first thing that they see, making it easier for them to change the variables and less likely for them to screw something up.
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