I don't see anything wrong with what you've got. You could go another 1/4" back with no issues if you wanted. (Sounds like you already have with the 16 tooth cog.) Possible considerations - you may prefer a more compact rear end to the bike that will skid less when climbing out of the saddle on slippery surfaces. Or like the quicker feel when cornering with the wheel forward. On the other hand, you may like the generous clearance between tire and seat tube and the ease of getting the chain off to pull the wheel out.
The bike absolutely doesn't care where that wheel sits as long as you have enough track end to clamp properly with the nut.
I'd probably remove a "link" (inner and outer pair) and slide the wheel forward 1/2" - unless I had thoughts of also using a bigger cog to go up a hill. There are 1/2 links (male at one end, female at the other) that shorten the chain just 1/2" and move the hub 1/4". As far as I know, these are all for 1/8" chain, not 3/32". I cannot tell which chain you are running.