The cross-hair is just a point of reference, it's up to you to judge the distance and move the cross-hairs ABOVE your target accordingly so that the arrow flies in the correct arc to hit your target at a certain distance.
Why do you think you see in the Movies and at exhibitions, where the Longbow archers aim 30 degrees or higher towards the sky instead of directly at their target?
You can't expect to stand at one end of a football field with a bow, and directly aim at the bulls-eye on a target at the opposite end of the field and expect to hit it,
the arrow wouldn't even make it to the target actually.
Just like with the cross-hair in some sniper rifles, there's gradations in fine increments so the sniper can adjust for things such as distance and wind, this is no different.
So, the cross-hairs is in no way misleading, as the cross-hairs, DO NOT indicate where the arrow is going to hit.
I'm not sure why there's confusion about this, but it's just basic physics and gravity at work here, with some practice you'll get good at it.
Try practicing with some of the target dummies placed outside, (and use the %100 arrow return mod

) and move farther and farther away each time, you'll begin to notice that you have to aim higher and higher ABOVE the bulls-eye in order to hit it.
I can hit a bandit in the middle of the back from pretty far away if I aim the cross-hair at his head, if I aimed the cross-hair OVER his head that same distance, I'd get a headshot,
but with a 3x sneak bonus, it's usually not necessary.