Congratulations on joining the Trek 720 Club!
I would recommend trying everything you can to get the bike to work for you, at the same time- keep looking for a similar bike in your size.
I'll say that I used a tall Nitto Dirt Drop stem, that put me more upright than stretched out. It looks like they make Technomics with at least 110mm reach. Make sure you wrap up that Cinelli stem- it's got such a beautiful sheen you don't want to damage in storage.
On one hand, the 720 is a fantastic bike- it's a great rider, and it's got that "cachet" that goes along with it. On the other hand- if it doesn't fit you, you're not really going to be happy with it. On the OTHER hand- the 22.5" is additionally quite a desired size- so you've got
premium trade bait and selling power
when you find your grail bike in your size.
And for bike pr0n porpoises- my 85 Trek 720: