Air carrier First Officer reported they touched down only seconds after a departing aircraft lifted off the runway. Reporter stated that ATC cleared the departure for takeoff with inadequate separation which could have put the two aircraft in unsafe proximity to each other in the event of a go-around.

Narrative

We were cleared to land Runway XX by Tower and the approach was uneventful up until this point. At approximately 2.5 mile final; a Company 737 who was holding short of the runway was cleared for takeoff on Runway XX. The flight crew believed that this was a possible go around situation immediately if the 737 was slow to take the runway. I should note here that our flight and the Company flight were the only two airplanes moving on and around the airport- it was not busy at all. We continued our approach; flying a flaps full configuration with a relatively slow approach speed; while keeping a close eye on the Company 737. As we approached closer to the runway; we believed that we had been backed into a corner by the Tower's takeoff clearance to the 737 and a go-around would have put us climbing directly over the top of the departing airplane while performing the go around procedure. The Captain chose to continue while I monitored the exact progress of the 737 on their takeoff roll. As we were in the flare; the company aircraft rotated several thousand feet down the runway in front of us; and we touched down approximately 1-2 seconds after their wheels left the runway. The landing; rollout; and runway exit were uneventful. After clearing the runway; I asked Tower Do you think that was close?" To which the Tower controller responded; "that's what we aim for" or something close to that quote. Both the Captain and I have never experienced traffic separation that close; even at the most congested airports we fly to. We were both caught off-guard by the controllers response and as if nothing really occurred in their mind. In hindsight; we probably should have conducted a go-around earlier when we truly realized we were not going to have adequate separation. This could have allowed us to deconflict the two airplanes by turning and climbing earlier than getting into a situation where a go-around would have put us dangerously close and potentially over top of the departing 737. I believe the major causal factor in this situation was Tower clearing the 737 for takeoff while we were on short final to Runway XX. Had they been in a "line up and wait" position; then cleared for takeoff; we believe that we would have had comfortable separation from them. However; this was the closest I have ever seen two airplanes almost being on the runway at the same time; and a go-around in a late stage phase of landing would have created a dangerous situation and complete loss of separation between the two aircraft. If the Tower Controller "aims" for that close of spacing between arriving and departing traffic; then I believe that their safety mindset and ATC aircraft separation requirements need to be revisited for safety reasons."