It's rather funny, I'm also 5'-9" tall with a 32" pants inseam. I ride a 58 cm bike but my knees were hurting me a bit too much. I measured my PBH and calculated my seath height by Peterson's methods, and after I adjusted my saddle height down (about 1"), my knee pain was gone and I have never felt so comfortable on a bicycle.

It really depends on the person, and how you're riding. I'd never go fast enough to take advantage of the features of your Element, although I think it looks amazing! I have a shoulder problem and some anxiety issues from a crash about 5 years ago. Upright posture with a "large" knee angle is about right for me.

edited to add: after adjusting my seat height, as calculated, I now have exactly a fistful of seatpost!