I think we are saying the same thing I just did not word mine all that well.
"So that means that the N/S line on the diametrically magnetised magnet would run perpendicular to the N/S line in the top?" By this I meant the dividing line or split of N/S on the actual diametrically magnetised magnet as being perpendicular to the line of N/S shown by magnet in yellow top. This what you have drawn on that magnet. This may be important in the orientation to the sensor?
Keen to hear what others say to your question on alignment/orientation to sensor - hopefully it did not get lost in discussion!.