Lady is closer to being in the crook of the man's elbow, yes, but she probably can't quite be there unless her back is very wide or his forearm very short. His fingers will cross her spine unlike in the swing dances - his palm might even be on it. But he shouldn't have his entire hand on the opposite side of her back.
I find actually that the crook of the lady's elbow is often positioned exactly in line with the point of mine, covering it.
On the tango position: ideally the counterclockwise rotation would be of body (hips) only and not really including the shoulders so much. Turning shoulders clockwise tends to break the connection, wheras a really good, wound up tango action is achieved by turning the hips to tuck the right knee behind the left. You do this windup while over the standing foot, then you step forward into what will naturally be CBMP... walk. Take a diagonal step continuing in that direction without turn... walk. Then wind up turning the hips again and step Q, snap to promenade Q... link.