But low bars can also lead to hand, nerve, back and neck problems, as Bob Gordon talks about somewhere else on this site . Until the 1960's or so, many quills were around 160mm. Traditional forged Italian stems such as Cinelli and 3ttt have 135mm quills. Most TIG-welded stems have 125mm quills. That's pretty short.
Stems tighten either by a cone or a wedge.
If you overtighten them, they can bulge the steer tube, so don't. I've seen it happen many times. That line is in the same place regardless of whether the quill has a cone or a wedge, and that doesn't make sense, because the quill doesn't know where the steer tube threads are. You should find out by looking where your threads end, then hold the stem up outside the frame to see if the height you desire is acceptable. I think it started with mountain bike.