You should be careful about moving your saddle to fit your arms. You really should set your pedal-saddle relationship first, then your saddle to bars.
It really makes no difference if you shorten your reach using a shorter stem or riser bars. The effect on steering is the same; it depends on wheer your hands are in relation to the steering axis.
If your bike is too long you should maybe consider a shorter bike. The fashion for some makes is a long top tube, but different manufacturers make different shaped bikes. You can always get a size smaller to achieve a short bike.