Perhaps not the most outlandish, but that's missing the point. It is obviously, by the op ' s post, not working out well in this configuration. To solve this, more room is needed.
Okay, but that isn't the same as blanket saying that the bike's too small on the basis of a picture of a bike with a well-extended seatpost and low relative handlebar position.
The point, which is what I think has been missed, is that not everyone benefits from a more neutral position. In my own case, though I hardly class myself as flexible or even particularly fit, all attempts to level or neutralise my ride positions have left me painfully unwilling to get on the bikes, by contrast I have found that by pushing my post out and the saddle roughly central, then dropping the bars an inch or so down, I have reached a good balance between performance and comfort.
I read the OP before I started commenting and from this and the photo it seems fairly clear that a) the issue arises when out of the saddle and therefore any opinions on whether the saddle is in the right place are moot, and b) the issue can only be solved on this particular bike if the OP rolled the drops upwards and/or fitted a longer stem. Since we have no anatomical data on the OP any other suggestions would also be moot.