Wow you have a good eye. Yes my current bike is to large for me. I'm 5'3" and wear a size 30 inseam. I should have a 53/54 cm bike. This one is well above that. I got it because it was a killer deal and I didn't know any better. I was coming off of a dahon that I road until it literally fell apart. Having the bar low puts strain on my wrist and hurts my back so I raised it so I can have an upright ride. I lug around a well filled backpack so that doesn't help. I like having the lightness of a road bike and the speed. Before I got on this bike I never knew how awesome bike riding was. It was like going from driving beat up old station wagons to getting in a last years model Acura.
I guess I should keep an eye out for a smaller frame.