some data points/observations to help on your question ... on the little hat I just finished I had thought I should block the hat and in the process press up the bottom fold so that it would fold rather than roll. Beside the fact that I was disappointed in how blocking it smushed the texture, I think the bottom edge that I folded up did indeed stretch out/flare out a bit (may not be noticeable in the picture I posted, but it was enough to make me pout a little). Sounds to me like your idea of making that initial edge either a few stiches fewer OR starting with one size smaller needle and switching after the ribbing might just be the right idea. Besides not blocking the hat like I did.... I'll be anxious to hear if you think this one ends up looking ok or slightly flared.
Most Recent FOs: a blanket for Project Linus!