Also, the rear arches changed post GT Veloce models. The early cars had lower rear wheel arches - which you can tell by the distance from the top of the wheel arch lip to the start of the gas flap as well as different depths (width) in the arches
the wheel arch change actually occured in mid to late 1967. Many Stepnose cars came with the higher arch, as you describe. The higher arch change came hand-in-hand with the 4-bolt front end revision. Not many people know, or care, but people looking for stepnose cars to make into track or fast road cars are hot for those late '67 GTVs because of the updated suspension and ability to easily fit wider tires in the rear. While most of these late '67+ cars turned out to be GT Juniors, there were a small amount that were GT Veloces, see Bryan's old car.
I actually prefer the look of the earlier arches. They resemble the original GTA cars and I like how they tuck the tire a little more than the later cars...but they are a pain in the *** to fit any wheel that is 7" wide.
Funny thing about "stepnose" vs "smoothnose", when i first got into Alfas, i knew i wanted a GTV and bought a '74. Never knew there was a difference in body design, but i do remember thinking "why do some GTVs look so much better than mine?" I quickly caught on and subsequently sold my '74 and bought a '65....then a '67 with high arches and 4-bolt suspension.
If I were to buy another "smoothnose" it would be a '69 with small taillights, but the "stepnose" alfa is one of my favorite car designs of all time. Very subtle and understated, but looks amazing from every angle.