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My 1999 LX had a non adjustable one just like yours. I finally found an adjustable one on ebay for a reasonable price. Probably not very exciting but one of the most practical upgrades to my 99. I am also upgrading the overhead console to the later model version with the sunglasses holder.
Yes, with it the cup holder works sort ok, its very shallow. Oddly I have wheeled without spilling. Without the little insert, your just gonna get wet.
Here’s an idea for a guy with a 3D printer. Make a short extension post for the existing butterfly separator. I can see that being helpful and a hot little ticket.