hmmmmm - I'd say it depends on how you want to ride, that you would want to start putting the handlebars up higher to achieve a little bit less length.
If you are looking for a more comfortable, relaxed style of riding - like touring then that might be a good route to consider.
If you want to race then you would want to try to preserve some of the drop.
It can be tough on small bikes in the first place to get much drop, just because the size of the wheels dictates how low you can go (unlike designs for big people who do have a lot of head tube to work with - most of my bikes the down tube and top tube meet or nearly meet at the head tube.... - even on the ones that have 650's)

Heck I've even got that same Salsa stem on one of my bikes, but put on the other way around, angled down, to achieve a bit less height for the bars, but I looked at my bikes last night and all of them do have some handlebar to saddle drop.

Another thing to think about, depending on your core strength and flexibility, somewhat lower may actually be more comfortable (if you are inflexible in the low back and hamstrings it can be the exact opposite - getting down low can be quite a pain). On an old bike I had was a bit too large, a bike shop tried to make it fit me by putting on a very long stem (it was a quill stem, so this had the same effect as have a long steerer on an more modern bike) It had a good effect on my knees and legs, but the more upright position put a lot of extra stress on my butt and lower back, which preferred to be somewhat more laid out. I can be fine on a very upright bike (like a comfort bike/cruiser), but the inbetween position was bothersome to me.