Would a shorter stem (in the horizontal direction) help me in the meantime while I look for a smaller frame? I can get my saddle low enough so that my knees aren't bending too much, and I'm actually pretty comfortable in that aspect. Yet, I still have a little discomfort in my lower back from the reach when I go down to the drops. It's like I'm stretching my torso which may be good for my flexibility I just can't take the feeling on longer rides.

I don't mind riding the higher part of the bars all the time but my brake can only be reached comfortably with my hands on the drops and I like that peace of mind when I'm in a congested area.