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You already mentioned this in your post, so you already answered your own question. If you value realism then yes, it's an exploit.
Hell, if it really bothers you; line up the hidden ones behind the visible ones and call them forced induction boosters :)
Do I put them inside and surround them based on security and beauty thoughts while they still have a clear directional path the force is going? Absolutely.
I think It's a matter of how you put it, I don't think that material next to a stream suffers real damage, sure, it is more challenged then other material but not in a way that space engineering could not hold against it. Otherwise NASA and ESA could never have build stationary launchpads, those are even taking direct impacts without randomly exploding (except someone messes up to consider cm are not inches :>). The Thrusters are not working like our thrusters today but as we have found a way to deal with the drawbacks today, we will find a way to deal with them in future.
So putting thrusters inside but giving them a clear path in throttle direction should not be considered exploiting as long as the devs are not doing anything against it, what I hardly doubt, if they would consider it exploiting, they already would have changed the way thruster damage is applied.
EDIT: If someone don't get the meaning, I'm too lazy for screenshots, here's a "drawing"
B = Block
T = Thruster
-> = Direction of force
No:
BBBB
BTTB ->>
BBBB
Yes:
BBBB
BTT ->>
BBBB
that way your not exploiting and your ship looks interesting and menacing in some cases.
http://i.imgur.com/meYxhhW.png
It looks very nice though.