I actually have a bit of toe overlap on my 650c bike since it's got quite a short top tube, which I need. But I would never, ever ride a MTB with toe overlap since sharp turns at slow speed are often necessary. And that photo, well, it looks like a woman riding her husband's or big brother's bike to me...but I'm sure I look equally out of proportion when riding my Bike Friday, so live and let live! 
I must admit, the advantages of the 29" wheel are many, now that I've read the list, but at my height, I'm still not tempted. Nor do I have the money! And I need my low gears.... 
Emily
Emily
2011 Jamis Dakar XC "Toto" - Selle Italia Ldy Gel Flow
2007 Trek Pilot 5.0 WSD "Gloria" - Selle Italia Diva Gel Flow
2004 Bike Friday Petite Pocket Crusoe - Selle Italia Diva Gel Flow