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No problems so far. I only went down 1.5" due to the crappy roads here in La. After riding this past weekend, I think it's just right. Any lower and I think I would rub alot and prob have some lean angle issues.
Can't really tell what the lowering did to the look of your bike because the pic is taken on grass - therefore the bike is leaned over more than it would be on pavement, plus the grass makes it look lower than it really is.