This is a late response.
On most performance bikes, the handlebars are lower than the saddle. A saddle to handlebar drop of 1" or less is pretty rare, even for endurance road bikes, for the average cyclist. Now, I have only about 1" of drop, and very short legs. Thus, if you ask anyone who has ever ridden behind me on my current bike, they would still say that my position is very low.
That amount of drop is pretty unusual for a performance road bike, i.e. a racing bike. All else equal, it would indicate to me that you probably should have been looking for an endurance road bike, assuming the bike were set up correctly.
As Noise observed, the bike is probably not set up according to the fitter's specs. Consider Setup Report 2. Focus on the columns labelled Bike Select i.e. the first two populated columns.
Parameter |
X |
Y |
Handlebar center |
456 |
614 |
Saddle center |
200 |
675 |
Focus on the first row. Now, consider the center of the bottom bracket. The X and Y coordinates refer to the position (in mm) of the handlebar center with respect to the BB center. That is, the handlebar center should be 456mm to the right of the BB center (we're looking at the bike from the drive-side). The handlebar center should also be 614mm above the BB center.
The bike manufacturer will give the stack and reach for each frame size. That is measured from the BB center to the center of the top of the head tube. So, you set the handlebar position using spacers under the stem, stem length, and stem angle. If Setup Report 1 gives the bike measurements, it has a frame stack of 542mm and a frame reach of 385mm. Let's assume the handlebars are in the specified position.
The second row of the table above describes the saddle's position relative to the BB in x- and y- coordinates. Alternatively, on Report 1, the fitter gave you a height of 702mm measured along the seat tube. That measurement should form the hypotenuse of a right triangle, where the base is the x- coordinate (200mm) and the height is the y- coordinate (675mm). The math checks out with a small error margin. Anyway, if you take a tape measure, you should be able to see if the saddle height was correctly set.
Without being there in person, I'm not sure if it was set correctly. Noise is correct that there should be about a 60mm difference in vertical height (the stack, or Y-coordinate) between the top of the saddle and the center of the handlebars. Again, if you were actually recommended to have handlebars nearly level with the saddle, you probably should have considered an endurance road bike. Most modern endurance road bikes have aero features, and you would be able to go very fast on them, physical ability permitting.