Maybe I'm wrong, but isn't "hoods directly over the front axle" considered a good rule of thumb for relatively neutral handling? That is, neither too twitchy or dead for a given bike's front end geometry.
I'm curious about this thread. A recent acquisition made me realize that I prefer bikes with a saddle to hoods reach 2 inches shorter than I usually ride. To change my other bike to match would require an 80mm stem and short reach handlebars, a decrease of 50mm or about 2 inches. I would like to plunk down the cash but am worried about twitchy handling...perhaps it would be cheaper and healthier simply to stretch and strengthen my core/back. But there's only so much you can force your body into!