Thought a couple of pictures might explain this better? As you will see dremeling the hole to enlarge it really wouldn't change nothing.

In pic 1 you will see a red arrow and a blue arrow. The red arrow shows the hole from which the cable exist the neck cover. The blue arrow shows where the cables pass behind the triple tree. Now when the wheel is straight this is fine but when the wheel is turned to the extreme right the tree keeps the cable in position and the neck cover hole is now forward of the cable.

In Pic 2 you will see the wheel turned to the extreme right giving a slight view of the cables exiting the neck cover hole resulting in the bind.

In Pic 3 is another angle showing the cable being binded as the wheel is turned to the extreme right...

Like I said in normal operation there is no bind, only if the wheel is turned to the extreme right. I'm not even sure how long it's been this way just never noticed it before? The neck cover has been on the bike for better than 3 years. Just not sure if it's all that big a problem or not? Thought I'd ask my fellow HD forum users

 

If it was mine, I'd still consider cutting the opening to allow more movement before the binding occurs.
I'd follow the slanted rear vertical edge of the opening and cut it about a quarter inch wider the length of the opening vs. a smaller cut for the throttle cables only.
That way it would look closer to stock.

Sorry if not clear.

 

Thanks for the comments and suggestions...

 

Adjust the cable itself and you can get rid of it very easily.