The problem is just the thickness of the padding, not necessarily the location. The padding in the locations that aren't being compressed aren't doing anything good or bad, but different people are going to hit the pads in different places. Anyway, the chamois in my shorts comes up the front a bit but they aren't really padded there per se.
Yeah, I see what you're saying. So when you're riding, you don't feel any testicular pressure from the pad in your shorts? What saddle and what shorts? I'm using PIs with the thinnest pad, and a Brooks Imperial. The pad is wider than the cutout, and it's about 3/8" thick right in the testicular area. Result: crowded testicles.