Functional bikes. Not Porn not Anti

Wider bars is the answer. Or lower the rack if poss.

I see that you could lower your rack a little. Anywho, my exprience is that if you clear your bag your cables interfear with the bag flap opening and is anoying. It looks fine as is to me.

And about grips, if you planning long rides with a bar like that you should get proper ergo grips (also in cork) or maybe silicone ones. My experience with cork is that there to hard on long rides, my hands turn black and fall off after 3+ hours.