I played around adjusting seat position and handlebar height on my Giant Escape last summer and found the sweet spot for handlebar height to be at least 2" above seat height. I also changed out the seat post to give me more setback. There is a difference between stretching down for the bars and stretching out for them. You can find your own sweet spot by noticing the pressure you feel on your arms versus your seat. Take your time finding that happy balance between your butt and arms.