Pick the crank length you want for your pedaling/riding style. Then fit the saddle position relative to the crank, and then the distance to the bars relative to the saddle. Last the bar height, which depends mostly on your flexibility. Changing crank length to make a bike fit is the wrong way to go about it.
I'm 6' with a 35" cycling inseam and like 175mm cranks. Since I do long road races and a lot of climbing I prefer a position to the rear of KOPS. That engages the glutes more and quads less. It also means there is less weight on my hands, making long distance riding more comfortable. Most rec riders would be best served by a similar position. The only riders I'd have on or ahead of KOPS would be crit racers or track sprinters. (not counting TT/tri position, that's a whole different setup).
From your description it sounds like your position could be greatly improved. Sitting forwards means there is more weight on your hands and may be the reason why you feel you need to raise your bars. You might consider a fitting from a knowledgable fitter.