If you can get the saddle to the right height for you and the cockpit still feels comfortable, the bike fits you fine. Sometimes it's difficult to get the handlebars to a comfortable height relative to the saddle on a frame that's too small. If that's not a problem for you on this frame, you're good to go. I prefer a short cockpit myself and tend to ride a smaller frame than I could otherwise fit on if I was willing to stretch forward more.
Standover height is nothing more than a safety feature required by the CPSC. It has nothing to do with bike fit.