"Is my biggest problem that I am referring to the pouch as a HEEL pouch? Is that actually a little toe? Because as I seam down the sides and I get to the garter stitch rows, if I hold (it) together it SORT of resembles a little shoe. But the seaming on yours went diagonally across the bottom of the foot, and try as I might I just can't see it. These are so frustrating. Do I seam stockinette to stockinette and garter to garter?
Or do I cut them at the ankle and add ric rac for a jaunty footless legging?"
Now let's see if I can answer your question:
Yes, yes, the "pouch" you're seeing is the toe! Why I didn't catch it sooner when you mentioned that before is a testament to all the brain power I've lost exponentially with each child I've given birth to. That's a great illustration, by the way. I completely understood it right away.
The foot should resemble somewhat the shape of a shoe when seaming:When starting at the top of the leg, the seam will end up running down the inside of the leg. By the time you get to the garter stitches on the foot, the seam should be right where that little bone sticks out at the inside of the ankle. Then when the seam gets to the bottom of the foot, it then runs straight down the center bottom of the front part of the foot.
You see from your illustration that the knitted area to the right of the toe is longer than the knitted area to the left. That's the part that wraps around and becomes the heel.And yes, match up garter to garter and stockinette to stockinette.
See from this picture how you would match up the garter rows together when turning the longer knitted flap around the corner of what is to become the heel?
Then the seam will run down the center bottom of the foot. I hope this is what you need to finish the project. Though I did get a chuckle out of your jaunty footless legging with ric rac idea. There's always that to fall back on if this doesn't work out...
Good luck with finishing. Do let me know how it turns out.