My setup, typical of my commuting as well as pleasure road bikes. Saddle placed where it feels good, and handlebars a good 4"/10cm below the top of the saddle, or as low as they will go on the particular bike. As necessary, change to a longer/shorter stem to get a comfortable reach.\
I ride on the drops except when lifting my head for a better view at intersections (not to many out my way).



Here's my latest build. Funky appearance of bar tape is due to re-wrapping after stem transplant; 120mm Cro-Mo stem courtesy of my friend bulldog.