I’m in the same situation as you (check this thread https://www.reddit.com/r/AppleWatch/comments/17v46zh/apple_watch_6_screen_cracked_now_what/) . Mine cracked and still works though, so I decided to order the Ultra 2 to use as a more sturdy and everyday watch and have the AW6 SS for when I need a more elegant look.
The Ultra 2 arrives tomorrow, so I can’t give any feedback yet on if I prefer it.
Looks great! This is the correct area to wear indeed. Apple states it in their website, that it should be worn above the wrist bone. I have small wrists like you and mine arrives tomorrow (big jump in size from the 40mm AW6 I had).
Most people who complain that the AW (w/e model) is annoying, or that their hand pushes buttons when they bend it, wear it wrong. Their sensor readings are inaccurate as well…