Originally Posted by
Jeff Neese
I hadn't heard any "prevailing wisdom". Here's my Rockhopper. I've tinkered with the angle a bit but the height is about right for me. The drops are certainly lower than where the flat bar would be - that's the whole point. It moves weight onto the front wheel and lowers your center of gravity for better handling, particularly on fast downhill over sketchy terrain.
Guitar Ted has an excellent site and a lot of information on setting up the drop bar MTB.
Guitar Ted Productions: Drop Bar Mountain Bike Tips: Updated