The recorder is capturing what the listener is hearing. If you have the recorder at a reasonable distance in front of the band it is simulating the 'ears' of the listener. If the balance is that far off I'd examine the volume balance of the band of stage.
I think the ability to 'hear' what the listener hears in one of the most valuable aspects of a recorder. Not only can you examine the balance of the group but the overall performance and the way that you fit into that overall sound.
This turns out to be very good advice. The problem the OP is encountering is that he is trying, understandably, to compromise between far-field, omni-directional recording and close-miking. With a fixed-mike recorder such as the H-2, H-4, or Edirol, that's a difficult balancing act (pun intended). I have been able to make some remarkable recordings with the "almost close-mike" technique if the room is small. In those cases, I've done the dance where one places the recorder near the less-intense instruments and then arranges the physical location of the instruments as best one can.
In larger rooms with more reverberation and where the location of the instruments cannot be tweaked very much (performance situations), I find it best to go for the far-field omni approach where I try to capture what is heard at a typical listening position. This is a tried and true technique. There was a famous recording made back in the 50s by the engineers at Vanguard. IIRC, it was of the Franck D minor. It was made with a single microphone (the days of monophonic) at the back of the concert hall. The entire orchestra was captured spectacularly.
By the way, I love my H-2. It was a fantastic buy!