In my opinion, the lacing of the first pair looks indeed a little bit too close. Whether you should keep them depends how much you paid for them. If they are new, I'd consider an exchange.
Generally speaking, both shoes look a little bit long, judging by the position of the crease. I'd suggest to get the Allen Edmonds shoes sizing guide, and measure the length of your feet. Just to make sure.
The sizing guide is a bit generous (about half a size for many AE lasts) but the last time I looked, it seems to works fine for the 5-65 last. Some people seem to size up for this last, probably because it's slightly more narrow and also more flat in the instep when compared to other AE lasts.
Thanks for the reply. Had them shipped internationally from Endless so returning them and getting a new pair will be about $70. Hmm
The 10.5Cs might be a touch too long, but I don't think the 10Ds could be. My feet both measure almost exactly 11" (right foot slightly shorter). I can already feel the 10D rubbing my little toe a tiny bit, I think a smaller size would crush it (as might a 10C...).