Also when takin pictures:
A picture taken from an high position with a short focal length (camera phone, normal digital camera or dslr with a short lens) will distort the proportions so that the frame will look tiny. Also larger riders look huge with the 700c wheels when compared to smaller riders and that too has an effect.
Don't worry how the bike looks, if the angles are right and the bike feels good then the bike fits.
90 degree (+- 2 degrees)arm/torso angle with a slight bend on the elbows while in the hoods of the bike
25/35 degree knee angle when crankarm is paraller with seat tube and foot is in natural downstroke position
45-20 degree back angle whdn on hoods. This is about preference since some like it highdr and some like it lower.
The plumb bomb from knee is ok, but boils down to preference. Some like to be behind "kops" and some like to be ahead of kops.
Forward = use quads more (like triathletes)
Back= use hamstrings more (lots of slow spinning torque, climer thing)
Your middle (might be just behind dead on center or just ahead of kops) = use the majority of your leg muscles in different parts of the pedal stroke (best way if you ask me, but try out different things and see what you like)