Back in the Day, was it normal to have +3" of saddle to handlebar drop?
I have two old road frames. One is a bit small for me (56cm) and the other is bit large for me (60cm)
One each one, with my seat raised to the proper Lemond Formula-based height, and the stem raised up to the minimum insertion point, I still have about 3" of drop on each bike.
I'm not surprised the 56cm Miyata has that much drop, but the other bike in an old Medici touring frame.
I know for a fact the larger frame is not too small for me. It's larger than the 58cm Surly Crosscheck that fits me perfectly. On that bike, I have 1" of drop.