Learning about bike setup riding in the mountains

The other day I was having a chat with a friend about the bike setup. Now that I am here in South Carolina it has become obvious that I can not do the same thing I used to do before. He asked me about his bike setup. The seat on his bike is way back and he uses a short stem. So basically the whole cockpit on the bike is shifted back. He says this setup is better for him because he doesn't feel he's riding too much in the front of the bike. He's also riding a GT bike which he has read in the online reviews is higher than other bicycles.

My take on bike setup is still the same. I will set up my bike for comfort.  For any bike fit the first step is to setup the seat completely parallel to the ground and then move it back or forth so there is an imaginary line from your knee cap down to the pedal axle.