I like it, but I'd second trying it on in the next size down. The shoulder seam should fall at the edge of your natural shoulder as Janet said. Personally, I also think it can be just a smidge inward if you are careful, but that's my personal preference, not professional fit advice!
I have very broad shoulders, so I often walk a close line with the shoulder seam. It's important that your deltoid not misshape the line of the sleeve. I'll wear my shirts with the shoulder just a tiny bit inset, but no visible bump where the shirt hits my deltoid.
On you, the shirt looks just a bit outside your shoulder, and I agree that a smaller size would probably fit more closely in the middle. My fit preference is to be close through the middle if possible. For work I wear fairly fitted shirts. However, for weekends, since I have two little kids, I always make sure that if I am moving around and stretching and bending, I won't pop any buttons, so weekend shirts are looser. Also, I know that some folks are starting to wear purposefully looser shirts as a more fashion forward look.
