I've heard that same adage--regarding the bars obsurring the hub. You might also look at your elbows when you're in the hoods. Do they have a slight bend to them or are they straight and locked? You want some bend in your arms.

I agree that you might want to ride the bike as is for a bit before tinkering with the stem. When I first got my road bike last summer, I was a bit overstretched. As I got fitter and more flexible--from both riding and yoga--I got more flexible and now it fits just right.