That's some serious overlap as it's not just your toe but the pedal looks like it could strike the wheel.

The most overlap I have on any bike is just enough for the toe clip to brush the wheel and even that interfered a little with trackstands...a switch to 700:25 wheels and tires from the 27 by 1's really helped to eliminate the toe overlap issue.

Of course... I only have to deal with size 8 feet.

What does your fork look like ?