Maybe the bike is the wrong shape for you, and you would be better off with a different manufacturer.
The ratio of height to length varies between manufacturers. You seem to need one which is quite long for the height. Get your legs over a small Gary Fisher for comparison, these have quite a long design. Im not sure if there are any other makes you should look out for. Take a tape measure to the 'dale, and get a figure for saddle-nose to bars which you like. You can tweak it a bit with replacement stems, but that may change the handling characteristics.
Its OK to ride with plenty of exposed seatpost, esp if you are a smaller, lighter rider, as long as the --MAX LIMIT-- line does not show.