harov3

If by off-road stuff you mean cycle paths in the woods then you may be better off with a comfort bike. If however you mean single track, cross country or even trails then you would be better off on a mountain bike. You must decide what sort of riding you are really likely to do. For sure though its easy to get the feel you want from a mountain bike. There are all sorts of adjustable headstems (goosenecks) available and myriad choices of handlebar profiles, the seat-bars-pedals relationship you want should be achievable. Re crank length I dont know what size the cranks on the bike you tried are but there are also a few different crank lengths available. The range is not great however and I think the problem you mentioned of "knee squish" is probably more about frame sizing. Find yourself a reputable bike shop, find two or three if you can, talk to them about sizing and dont buy anything until you are comfortable with the fit and the bike shop.

edit: If you tell the lbs that price is no concern their all going to show you the most expensive bikes they have regardless of wether or not thats what you need. The cannondales you mention sound like lightweight cross country (xc) weapons- not what you want or need just yet. Tell them your requirements before price comes into it.