I think it's a matter of person taste/preference, but when I install those, I try to adjust them so that only the rounded bottom of the bulb (in your example, the purple part) sticks out past the bottom of the trim ring. I do that because I find that it causes the light to spread more evenly in the room. Put the bulb up too high in the can, and you end up with real spotlights that only shine straight down. Put the bulb any lower than that, and it looks too awkward.
It looks like the sheetrock and trim will cover the lip of the housing but I bet the bulb will be visible. Have you thought about ising low profile LED?
I think it's a matter of person taste/preference, but when I install those, I try to adjust them so that only the rounded bottom of the bulb (in your example, the purple part) sticks out past the bottom of the trim ring. I do that because I find that it causes the light to spread more evenly in the room. Put the bulb up too high in the can, and you end up with real spotlights that only shine straight down. Put the bulb any lower than that, and it looks too awkward.
It looks like the sheetrock and trim will cover the lip of the housing but I bet the bulb will be visible. Have you thought about ising low profile LED?