Dennis,
If you do decide to keep the front fenders, my earlier speculation regarding the gap or rather lack of gap on the sand-skirt portion of the front fenders was not entirely accurate. I was flipping through one of my references and saw a clear photo of a Sherman, sitting in clean in front of a warehouse, and there was a clear shadow line between the edge of the tranny and the vertical part of the fender below the flange. After puzzling on that for a bit, I realized what the deal is. The vertical part of the sand-skirt does indeed seem to bolt to the tranny's side cover. However, the outside of the side cover is not flush with the outside of the tranny but stands proud of it by whatever its thickness is, probably 3/4 of an inche or so.
So, the sand-skirts should probably be positioned to just touch the edge of the side cover which would give you the gap that you probably have there currently. What I had said previously about filling in the gap between the back section of the fender and the flanges that are molded on the transmission, is still correct.
For thinning out the fenders so they look more plausibly like sheet metal rather than armor plate, one handy trick is to simply bevel the edges. Because it is not real noticeable if the entire fender is of uniform thickness, the main thing is to simply get a fairly thin edge.
If you really want to crumple the fender, you could take some heavy duty foil, form it around the plastic fender, and then crumple. To give added strength after crumpling and perhaps some added thickness, fill the underside as needed with super glue.
Andy