Oh, yeah, that blue bike setup is pretty reasonable. Those brake levers seem ridiculously long on that thing. I'd ignore the straightedge advice and would probably place the levers about a centimeter lower on the bars personally. That'll probably give you a couple or three centimeters of lever below the straightedge, but whatevs.

I've got pretty small hands and I think a lower lever position would bring the levers closer to the drops.