With my aging eyes, I can't tell what number on the wheel your at etc.One thing that I do before any brake bleed of the ST is to get a feeling for how the brake pull and pedal push is before I start so I know about how it should feel when I am done. It should be about 2.5" from the center of the handle. This picture is pulling back on the front brake lever until I feel firm resistance.
But with the wheel set to position #1, you should only get 3/4 of an inch movement before the lever is solid and unable to be pulled in further.
I just measured mine, and another bike I just flushed the brakes on, and using your measurement method (mid-lever to the edge of the grip) I'm getting 2 3/4 inches instead of 2.
Of course your lever could be adjusted differently, or your pads could be worn down etc.