I have heard people argue that Z-M, the previous manufactuer puts the sight there from the factory, and that all LR300s look like this so not to worry about it.
HOWEVER, different variants of the LR300 have conventionally laid out sights, proving that its not a design-specific placement. After all its essentially an M4 with a castrated bolt carrier, spring loaded gas plunger and a folding stock. It shares the same ballistic characteristics of any other 5.56mm Armalite variant.
The rear sight is the same aperture as an AR 15, M4, M16 etc. It is adjustable for elevation and windage in the same manner as the other rifles mentioned. Obviously, mounting this sight further forward simply makes the precision aperture useless, as eye relief at that distance will prevent seeing both the front sight post and the target. The distance between the rear and front sights being shortened produces much more room for error when lining up the sights to shoot at a target, such as the AK pattern rifle with a similarly distal rear sight. (Thus why the Finns and Israelis chose to mount a more precise rear sight at the back of the receiver to produce a more accurate platform in the hands of a confident shooter.
So, long story short...I find it ugly and pointless to mount an LR300 sight so far forward. If one were to mount it in its proper position from an aesthetical point of view, then take the time to adjust the elevation accordingly to regain a proper sight picture, zero the rifle, would the world come to an end?
