This is how it used to be done.

What I want to know is can you spin really fast without your butt moving all over the seat. Your leg extension looks really close to too much but if you can hit 110rpm or more without a lot of butt motion you're good. With the pedals horizontal what's the relationship of your knee to the pedal spindle? I'd like to see that picture.

My fit philosophy is all about the balance of your body on the saddle. Once you're set so you can spin really fast without a lot of butt commotion and you can easily move from the drops to the tops, taking both hands off the bars and without hurry, you're basically good. Then you work on reach and bar width and then on crank length.

Your bike looks much better without the luggage, BTW. It's a very pretty old bike.