Does my elbow need to be lowered so that it is in line with my release and my arrow shaft? To do that I would have to increase my draw length and raise my kisser button and peep. I think.

If you're shooting good with what you are showing us, I wouldn't tinker with a thing!

Your elbow should be in line but you shouldnt have to lengthen your draw to do it. A full body photo would be better so we can see your stance and if you are leaning back, but over all you look pretty good.

OK, I guess my actual question then is how to lower my elbow. There are two ways to do it.

1. Simply lower the elbow without pulling back farther on release. This requires the elbow to angle out away from my body.

2. Rotate my shoulder back and down to lower the elbow. This is the way that really increases my draw length. This is in the pic below. Notice that my hand is so far back that my hand can not anchor on my cheek.

From the other line I drew it appears that I am leaning back a bit. It feels weird not to lean back a little.

If you have a solid anchor and you're shoot well with your current form then don't worry about it. Your elbow is a bit high and dropping it down will not cause it to be further from your body. You're keeping your same anchor.
My first thought is how are you actually drawing your bow. Do you start with your bow arm extended and pull straight back? That is the proper method. If you can't point your bow at your target and come to full draw using only your opposite arm you are drawing too much poundage. If you can you should come into alignment naturally.

you are too long on draw , where the two arrows meet on your graphic behind you mouth should be directly under you pupil or close , you are way back , a bigger picture is required but it appears you are leaning back quite a ways also , your release forearm should line up with your arrow , your elbow is high

my thought on form is quite simple. if your hitting your target don't screw with it we got guys at club look textbook form and suck got old farts look like the couldn't hit broadside of a barn an are best shots only thing in archery that matters is if you consistently do the same thing

Draw length too long elbow up too high and leaning back a little trying to compensate for the long draw
you need to shorten your draw length at least an inch or more
your elbow needs to be in line with your arrow.rotate your arm to where the trigger is against your cheek
(my suggestion get a back tension release)
the draw length shortened should correct your posture.

Get on Archery Talk and search "form". Alan Lui is the form guru there and has helped literally hundreds of guys. There are lots of threads, most with pictures, and Alan (Nuts&Bolts) is sure to chime in with his expertise. He's probably one of the best coaches in the country.

Great advice! I lowered my draw length 1/2 inches and it feels a lot better. I am also trying not to lean back. I tried a full inch decrease and it felt a bit constricting.