This is true, but at some point the bike is too short and the rider is using his/her arms to hold their upper body in a scrunched up (technical term) position. As the handlebars are raised up they come closer to the rider because of the angle of the head tube. So to achieve a more upright position, without an awkward looking number of spacers under the stem, or an awkward looking quill stem extension, and without an awkward looking amount of seatpost showing, I would still suggest the bike with the longer top tube. The steer tube can still be left uncut and the handlebars raised, effectively shortening the reach, (or making the arms longer) for a more upright position.