OK Andy
Preload, only effects the way the bike sets with you on it, that is all. Adjusting the preload is so that you get a certain percentage of the weight on the front and on the rear, called ratio. this ratio is designed into the bike and the amount of sag you set the preload for keeps the ratio in the range needed to steer well.
Spring rate is what causes it to react over the road and in corners.
first we adjust the preload front and rear
on the rear suspension the next item we tune is spring rate. we get several springs of the same length and coils and different diameters (once close we can change coils and length) and get the bike so it goes into and exit turns correctly. What are we looking for?
well if the spring is to hard, the bike will turn in fine but will have traction troubles, wanting to buck on acceleration out of the curve. To soft and it does not want to turn in well it understeers and feels real light on turn in, accelerating out feels ok.
once we get that set we then can adjust the damping. what damping does is stops the spring from oscillation. If there was no shock then the spring will pogo stick, we have the shock to stop that. A suspension that is being worked real hard needs to adjust the damping. Trust me most cruisers will never need this. And Most SS bikes do not get pushed this hard. But if you think you feel pogosticking when the suspension is at full compression or extension then you need to adjust such. It will not need adjusting until it is at one end or the other, if you feel twitchyness any other time, it is the spring
You see a spring can only begin to oscillate when changing direction of travel. So until it hits the end of travel it will do on that stroke, either in or out, damping should have no effect on it, only at the spring rate should affect the rate it travels and how much. we use damping to make sure the spring is not trying to keep going back and forth, we use damping to transfer energy into heat in the shock oil so the spring will return to where it needs to be when it needs to. That spring is already working so many other forces it does not need to fight itself. to much damping and it hits the wall to early and wants to osculate, to little damping and it never hits the wall and is mushy. But remember, that is at full compression that you will feel that, not in the middle of the stroke. Mushy in the middle of the stroke is a spring issue.
once the rear is set we work on the front, which means we may have to do further work on the rear. We go out and run 2 or 3 laps and tell our mechanic what is up and he fiddles and hands us the bike and we go out for 3 more laps.
On the street, we have way to many situations coming at us to tune a bike that close, we should never be going into a corner so fast that we use all of the suspension and need to tune it that much as when we hit our sweepers or straits with a few bumps suddenly we feel like our bike wants to kill our kidneys.
If Yamaha had intended us to ride this bike that hard, I am sure the first years would have had an adjustable suspension, but they did not upgrade untill the 2013 model. I am sure that was because of reviews by journalist. I could get that bike handling as close to a R1 as possible if you wanted, but it would be cheaper to buy a R1 and strip off the faring.
the bikes lack of adjust-ability is because it was never intended to need such so by not having it, they could sell the bike for less.