Height is only part of it. There is leg length, arm reach, top tube length, etc., etc. Compact frames are much more forgiving than of small size differences than older standard ones. But having said that, you do look a little cramped. I would say your torso is a little long for your height and the top tube on this bike is not overly long. So you appear to be extending too far over the bars, and that without fully tucking. Before doing anything else get a bike fit. See if longer stem or other modifications will suffice. If the frame is so small, it needs to be replaced, that is the beauty of ebay. You can buy a replacement, sell the old one, pay $100 to switch the parts (or do it yourself), and correct a serious problem for very little outlay, maybe none if you turn the frames around at attractive pricing. If you do make an exchange, be sure to analyze the other details of the new frame, not just the nominal size. Top tubes on 54 cm or M size can easily range from 54.5 cm to 56 cm. Big difference. Good luck.