Others may have a different opinion but I think that you are okay depending on your driving style. You might experience a slight jolt to one direction if speed and desert racing describes your style. This isn’t my thing so I can’t speak to whether this setup is good for that use.
@EWheeler?. Rock crawling and general purpose driving should hardly be noticeable with that sort of movement. Based on the amount of shock shaft that is showing, I imagine that the picture above is fully extended and your drag link and panhard are less than 6* at ride height, which seems good.
Is there a problem that you are trying to diagnose?