I'm betting almost everybody who thinks you're crazy could go get on their bike right now, stand and lean over the bars (pretend you're cavendish) and easily see how a stem/knee collision could happen.
I just tried it, nowhere close. Doesn't matter how I lean, if my butt's on the saddle my knees are inches behind the head tube.
maybe that's a better question - but no, the saddle looks normal in that pic.
Are you standing to make that happen?