I'll be watching for updated pictures of your actual riding posture, but other than the fact that the seat seems a bit high and angled forward, I don't see anything obvious about this fit that couldn't be fixed simply by flattening your back and relaxing your arms. Your arm, shoulder, wrist, neck pain could could all be caused by a nose-down seat angle. Bad news.
I think I'd look equally as awkward if I put myself in that posture on my bike, and my fit is great.
There is a fair bit of seat--> bar drop, but you can always flip your stem up instead of having it flat. Comfort > Looks.
Just realize that the discomfort is simply an indication that something is wrong, not necessarily an indication that something is wrong with the bike's setup, it could be the bad habits regarding posture, balance, relaxation etc..
Good luck, and I'll peek back in when you get new pictures up.
-Jeremy