Yeah, I'm still confused about your fit. By "stretched out," I believe most of us are talking about top tube length, as in you have to stretch yourself out too much to reach the bars comfortably. TT length is probably the most important thing with regards to fit, if you're comfortable with that then everything else should be pretty easy to dial in on your current frame.
If your leg is stretched out too much on your downstroke, then lower your seat. If your seat's all the way down already, then yeah your frame is probably way too big, but since you said you still have a half inch or so between your nuts and TT I really don't think it's that big on you in terms of height.