They have a ramp front sight even with the muzzle and rear adjustable sights that extend a bit behind the frame over the hammer. The barrel is a full length lug, which helps compensate for recoil, that is as long as the barrel in the model 586;686.
The model 66 DOESN'T have a full length lug in it's longer barrels, but in shorter barrels it extends to the end of the barrel.
I haven't seen a 586/686 with the sight set back.
I guess everybody has their own tastes, my to me my 686 is a gorgeous piece of the gunmakers art. As I believe that most S&W revolvers are.
PS: I believe that the compensator versions might have the sight set back. I never paid attention because I don't like comps anyway.
Those that have the set back front sight have the so-called Power Port, which is a compensating hole drilled in front of the front sight.
Also available with other barrel lengths too.
Non power port models have the front sight pretty much flush with the muzzle.