Agreed. The pads are equally low in the slots and appear to be as low as they can go.

Looks as if the last person to work on the brake knew that the brake reach is insufficient but tried to compensate by deliberately mounting the brake off-center. The one pad is fully on the rim, and the other looks as if it the top of the pad was ground or filed at an angle in an attempt to clear the tire. (Either that, or the tire wore the pad down as the pad was wearing the tire down.) Maybe it worked for a while, but installing a longer-reach brake is the best (and arguably the only rational) solution.