I don't think fluid elements are crossing streamlines here. Streamlines are being divided, that not necessarily mass exchange between layers.
Imagine what is happening between streamlines. In steady flow a group of molecules are all together doing the same thing as the others in the streamline. The streamline is a boundary that is saying things inside it are doing the same thing on average. Then, they are presented with an obstruction, something that forces convective acceleration. That group of fluid particles is forced to divide into new groups, or layers such that the mass flowrate of that original grouping is conserved. In reality there is always some small turbulence from the change, but in theory the layer that "was one homogeneous unit" splits into new layers each having their own homogeneous velocity. Past the obstruction, they may settle back into the original formation.
Thats what I think is happening.