Generally speaking you seek a 90 degree angle between where your hands contact the bars and where your shoulders meet your body. My suggestion has you lengthening the stem to achieve a longer effective reach. By doing so, you'll open up your shoulder angle. It's unfortunate given the quill setup...Thanks for the saddle pics! I'm basing the small frame size off of your tight shoulder angle and fact the saddle appears to be as far back on the rails as possible.