There is some school of thought that gluing the launch lug in one of the fin joints and then applying fillets to each side of the fin/lug joint reduces drag to some extent by reducing the number of 'drag objects' your rocket presents to the airflow.
But at best the effect of this would be minimal -- well below the allowable 10% variation in motor performance -- so any improvement in performance you might realize from this would be barely noticeable.
The most important thing about the launch lug is to be sure it is mounted absoutely parallel to the long axis of the body tube (through which the motor thrust is transmitted to the airframe) so when your motor ignites and starts pushing the rocket up the launch rod, the launch lug is not trying to get it to go in any other direction besides straight up.
Having the launch lug misaligned ("crooked") by only a degree or so can be barely noticeable to the naked eye, but can have disastrous effects by causing the rocket to travel at an angle to its thrust direction, which can result in friction, binding or snagging of the launch lug (especially on multi-piece launch rods with joints) or the launch rod itself bending or whipping, resulting in the rocket taking off at unforeseen and usually undesirable angles when it leaves the launch rod.
And if the launch lug is REALLY on crooked, once the rocket generates significant airspeed, that lug is going to act as a mini-tube fin/rudder/air vent causing the rocket to go even farther off course (or go into a spin).
(Although if you've managed to glue the lug on so far out of whack this effect became substantial, odds are real good you probably got one or more fins on cockeyed as well so the lug may be the least of your worries.)
:bang: :surprised:
So Reader's Digest condensed version: It is fine to mount the launch lug in other locations besides in the fin fillet joint, but wherever you put it, make sure it is on straight.