I've riden with Cathy and have to say your body position isn't bad.
I think Casey hit it on the head with his technique advice and that you just need to get lower in your stance and you'll decrease your lean by a surprising amount.
As for stock peg position, they suck!
I've never seen a set of folding pegs that actually fold well at speed.
They're designed to fold if the bike falls over at low or no speed.
And the unbalanced feel you had was the pole vault effect.
I've done it tons of time on the old RD which have pegs (and stock pipes) way low compared to modern bikes.
If you do want to get the pegs back and up and moneys a problem look at making a set of brackets to relocate you stock rearsets.
I'd be happy to help fabricate something for you, might be ugly, but functional.