simply aesthetic (not too important).
Nice. Wish I could ride a saddle to drop height like that.
Interesting - i have a 35inch inseam too and ride a 57cm Bianchi and a 56cm Canyon. For reference my saddle height (Centre of BB to top of Saddle) is 79.5cm and i run 110cm stems. I tend to have the saddle more forward than back too. Likewise a 58cm would just be too much reach.
Strangely i've found recently that moving my bars down has been more comfortable (i am 19 though so maybe a little less creaky ). Some things are worth trying even if they turn out not to suit you! I've also found that the most minor tilt adjustments on the saddle can make a great difference to back issues. It's amazing how big problems can come from such tiny elements.
I've re-attached my cleats at the wrong angle in the past and my knee hurt for a good week. I'll never make that mistake again. Good luck solving your aches and pains.