I have looked on the interweb here for awhile and am looking to a good answer to my question. Is this P Drain too deep going back to the outlet? I can shave off about 2 inches on the drain from the sink and the extension... as of now there are no issues/smells>?
Well its got a cheap plastic pop up assembly on it so tweaking on that can cause problems. The best thing would be to get rid of it and use a brass (chrome) pop up and tailstock assembly. I guess you can also raise it a bit but I'm not sure if you can get rid of the extension coming off the elbow out of the wall. Realistically, if it isn't leaking maybe you should just close the cabinet door and forget about it.
If, or shall we say "when" it starts draining slowly, it will be because the trap was too deep. Shortening the sink drain, lowering the tee in the wall, or raising the vanity are a few possible solutions.
You should be able to shorten the tailpiece and the extension to raise it up, but if it's working, I'd probably leave it alone. The cocked tailpiece coming out of the sink may make it hard to get a good seal there.
I just finished a job where there were several similar to that. If I had not used a different version, I would have had to connect all 35 that way. BUT, when I do/did them, I reversed the trap itsel without using the extension on the outlet. Your "extension" does not enter the trap far enough to prevent it from falling apart if it is bumped.