There was just a thread about bike fit on a LHT, set up very like this one, over on the Touring forum. It occurs to me that while the sizing issue may be different, the bike fit issue may be similar. In both these cases, that is almost the shortest effective length stem I've ever seen. Since one's arms are hinged at the shoulder, they travel through an arc. Therefore normally when one raises the stem, one uses a longer stem. These were my remarks about the fit on that other LHT with a high, short stem:
http://www.bikeforums.net/showthread...1#post11923572