There was an interesting thread about a month ago discussing the issue of pack fits. Maybe someone can point you to that one. Anyway there are 2 basic uncertainties in sizing, different people wear packs differently, and pack companies seem to have different definitions of the "proper" torso range, as well as different ways of measuring said length. The latter can be effected by commercial interests as well, where pack companies try to squeeze all the torso length into a minimum number of fixed sizes.
A conclusion is that both the official measurement of your own torso length and the official recommended length of the pack should be taken with a huge grain of salt. What IS universal, however, is if you find a pack that fits you "perfectly", and then measures the precise distance from the middle of the belt to the shoulder strap attachment, then if you find another pack with exactly that measurement (you have to measure it yourself because most pack companies only give you "recommended", not actual measurements) then unless it is a radically difference style of pack, that pack will also have a "perfect" fit. You can call the companies and ask for these specific measurement, but I highly recommend you figure out THAT measurement.
From the picture (taking a rough guess) I would suggest you measure the distance of that pack from the middle of the belt to the shoulder attachment point, and add about 1 inch to that. I'm guessing that that number is close to your "true" torso length, but keep in mind that in order to match it to another pack you have to get the specific measurement, NOT the recommended torso length. Was that clear?
Sorry for the long winded explanation. The short one is that "recommended torso lengths" can be mostly BS!
As Dan said, the pack you show in the picture is definitely NOT too long. I think you can take that to the bank. I'm not worthy to lick Dan's old-timey boots on this issue, but hopefully I just gave you an idea of how to resolve the confusion a bit.
The pack you show is not too long, and if anything you might get away with a longer pack as well. I'd try one out if you can manage it - you don't need to necessarily ask for another pack to try - you could go to a store with a tape measure and try on other pack with the right length, and then ask the company in question to tell you the specific length.
Or else get a custom made one. :-)