I asked Mike (the fit guy) the exact same questions and he was adamant that untill I buy a full on TT bike-that this is as low as I want to go on a regular bike, but that I should still be competitive. Taking out the lowest spacer or a deeper drop stem or a more forward position on the saddle would make for more disadvantages than advantages. Things like too much weight on the front wheel, uncomfortable, thighs hitting my chest as well as having to rebuild the front end everytime I put on the TT set-up.
So I guess the answer is no-its NOT low enough, but its the best compromise and as my coach , Mike and I discussed, its a great interum set-up that gets me to that super slammed aero position gradually. My big TT race of the years at the end of June so I have time.
And although I would agree that getting in the drops gets a flatter back and thats more important than anything as far a body position, I personally find it hard to keep my elbows bent in the drops for long periods, not to mention theres that whole thighs hitting the chest thing again and maybe non optimal hip angle. For me hammering in a full aero position in the drops lowers my cadance, but thats just me. I only do it for short bursts or inot whicked head winds.