That doesn't look *too* unreasonable. I think a shorter stem and perhaps one that angles up may be a big help. The handlebars also seem to have a long reach and drop. Perhaps compact handlebars would also make the bike fit. I think the next size smaller would have a foot of seat post showing. Unfortunately, this is why purchasing bikes online often don't save money. I recommend a trip to your LBS for some help trying to see if this bike can be adjusted to fit you.

And it you are used to an upright riding position, it is going to take some time for your back muscles to adjust. You can spend more time riding with your hands on the top of the bars for more upright. But most roadies spend the majority of their time riding on the hoods.