It doesn't even have to be in the threaded portion. I have been collecting bikes to make bike racks out of and I have a fork with a steerer that burst because of an over-tightened wedge in the smooth section.

I would say there are no right ways to get the stem in that position on that frame. It's a flat bar, get a stem that's not 130mm long and mount it within a reasonable distance of the top tube. Do your arms have to be stretched out in front of the bike like that? I say no.