I just recently got my first C&V but have been having some problems dialing in.

What would the best compromise be for my fitting problem?
The saddle is adjusted correctly, however:

When I place my elbow against the nose and extend my fingers to the handlebar, my middle finger is about a cm from the handlebar.
Also, when I look down while on the hoods, the handlebar is behind the hub.

I'm worried that if I get a longer stem to fix the forward balance/hub problem the elbow/finger rule will be much to extended.

Omitting getting a different frame/bike size, what would be the best compromise? Leaving as is? Longer stem? Shorter stem? My riding style is general commuting, no racing.

You may have a bike with a more laid back ST angle than the HT and/or a lot of fork rake. How does it feel and handle when you ride?

Make any adjustments accordingly.

There's no twitchiness at all, which is good. I don't feel particularly stretched or cramped, but seeing how this is my first road bike, its hard to compare.

Sounds like an acceptable fit for commuting within a 20 mile distance. You can always take the bike out on a 40+ mile ride to see if you still feel as comfortable. If so, than the bike fits you well.

I just tried touching my elbow to my nose and I just can't do it. You must be double jointed or something.

It appears that you, like myself, have a longer than average torso. You probably have a top tube that's just too short. I like either a square frame, 60cmX60cm, or even 2cm longer of a top tube. You can move the saddle back, or get a set-back post, but, that might make it tough on your knees. Sorry, can't be more helpful.

ONE centimeter too long with the forearm test? In my opinion you're taking it just a tad too far, though I know some guys are very particular about this sort of thing. I'm not. As long as the bike "feels" comfortable and right. If it doesn't you can try a little saddle set back adjustment.
The biggest question is: how does the bike feel?

I just did the same elbow test on my two favorite bikes, and fell short on both.

Rules are just general guidelines. Sounds like you're within 1 cm of correct fit. How long is your current stem? If I read your post correctly, is your finger 1 cm behind the bar? If so, you would need a stem 1 cm shorter. Ultimately go by what's comfortable.

I guess I do have a long torso! As the bike I bought is on the bigger side of my supposed range.

The bike feels great, but like I said this is my first road bike, so I have nothing to base it off of.

@thinktubes yes my finger is 1 cm behind. But If i got a shorter stem, the hub would be even further out in front of the handlebar. That's where I was running into a problem. Can't adjust one without messing up the other. Didn't know if one measurement was more important, or if I have a pretty good compromise as is. My only knowledge regarding fit is the huge amount of time I've spent perusing BF threads

These rules were meant to be a quick and dirty way for retail workers to fit you (i.e. people who do not have a sound knowledge of fitting trying to sell you a bike in a short time). Do not follow blindly.

saddle nose to stem - What does your forearm have to do with the way the bike fits overall? I fall 2 cm short of my bars on all my bikes and have pretty short forearms.

handlebar obscuring axle - This rule never made sense to me. The more your drop your bars, the longer the stem you will need to obscure the bar. When you raise your bars, you need a shorter stem to obscure it. In reality, you generally want it the other way around: longer stem with higher bars and shorter stems with more drop. Your viewpoint also changes depending on where you ride. Your eyes are in different places dependent on whether you ride on the hoods or the tops. This also ignores the fact that bar reach varies a lot between different bars. What I think is important is getting the center of your hoods, at the least, in line with your hub to get the best handling out of a road bike since road bikes need more front weight. That said, my handlebars do not obscure my axle.

What I suggest is using a goniometer while you are on a trainer to measure body angles. They are cheap. Then compare them to this site: https://bikedynamics.co.uk/guidelines.htm. I do this on all of my bikes and have done it for a few friends. It works pretty well, but is also not meant to be followed exactly. It is, at the least, much better than silly guidelines like these and KOPS. Get roughly in the region and then make micro adjustments from there. Once you have something that feels really good, write down your actual body angles (some goniometers are more accurate than others) and the geo of your bike for future reference.

When I put my elbow against the nose of my saddle, the tip of my middle finger is 5 1/2 inches short of the bar. My bike fits the way I want it. Obviously, I like to be more stretched out than most but the bike fits ME. If you like the way the bike feels, it fits. Those bike fitters that separate you from 250 of your hard earned dollars don't know how you feel on the bike. You do. Go with your gut feeling and don't be afraid to make adjustments, just make them in small increments.

Thanks for all the help guys!

I think I'll just ride as is for awhile and see how that works.