Doug Matthews from Microsoft posted some information about how the default hold short nodes are set - the formula is based on runway width.
Lee Swordy stated in the AFCAD2 readme
The maximum distance seems to be just over 230 feet, but it is best to keep it under 225 feet (68.6 m) to be safe. Note that the maximum distance is from the edge of the runway, not the center line.
After some posts concerning behavior at KLAS Rwy 19L takeoffs - I did some testing. I've since gone back are repeated the same tests with FS2004, and observed basically the same results.
Basically 225 feet appears to be a workable minimum for all but the smallest AI and user aircraft. The actual minimum distance does appear to be farther for larger aircraft - but tests of different model B747 aircraft of the same model radius and wing_span show some variation - because the reference point of the aircraft was different.
My basic test is to take KBAD and use the C taxiway. Set the aircraft as a user aircraft and taxi toward the runway, stopping immediately when the option to request takeoff appears in the ATC menu. I then can test the same aircraft as AI.
I've seen some very small Cessna's have to be within 185 feet of the runway, and some large B747 aircraft the hold short can be up to 550 feet from the runway.
Another item which quickly became clear is that if the aircraft taxi's over a hold short anywhere along the runway which is close enough - the final hold short does not have to be that close to the runway.
i.e. Where Taxiway S makes the little jag toward the 9R/27L runway at EGLL puts large AI and user aircraft within the runway range.
The short answer for ENGM is that the hold short nodes have to be that close, or the AI aircraft will not takeoff.
It does not matter if it is realistic or not - that is the way FS works.
You can "cheat" with FSX which you cannot with FS2004. You can set hold short nodes at the realistic location, then closer to the runway set a second hold short node - but set the properties on the closest to the runway node as
HOLD_SHORT_NO_DRAW
That will give you a functional hold short node with no runway markings. The AI behavior might appear a little unrealistic, but only people who are extremely familiar with the airport operation will notice the difference.