I am similar. I currently could stand to lose 20 lbs, and hopefully will, but even when I was 8% body fat, or less, I still had a substantial fat pad, so it is partly genetic. Also, as you age, I think the fat pad thickness increases independent of body fat composition, since subcutaneous tissue tends to migrate southward with gravity.
Having a bigger pad does detract from visual length, but much of the hidden length is usable. Although the skin and some tissue is non compressible, the subcutaneous fat easily moves out of the way so that much of that hidden length is “functional” (insertable).
In order to prove this, and for the sake of contributing to the lore of weird penis experiments, I took a plastic bottle that once contained camp soap, and cut a circular hole in the bottom of it. It is transparent. I have a BPEL of about 7.6-7.7 inches but a NBPEL of only about 6.0-6.25 inches. If I stick my cock into that clear plastic tube, I can touch the opposite end without much difficulty, and that is 7.25 inches. And a real coochie is much more comfortable to press against yourself than a hard, plastic tube.
So now I prefer to think of my fat pad as a comfy, cozy, clitty-cushion.