the problem you describe is the reason for the distinctive curve on "track" style bars. flare might help, a longer stem might as well.

you can certainly ride on the tops a lot, plenty of people do that. some also complain that the hand position is not comfortable, you'll have to find what works for you.

i personally find road drops with hoods to be a lot more comfortable, and i've got three different hand positions that are ideal for different situations. by playing with height and stem lengh i'm able to sprint out of the saddle in the drops without hitting my forearms. but it took some fiddling.