...... I can drag my knees on the 79 KZ650... but that ruins my jeans.

I have neither wide, nor sticky tires.. this bike weighs at least 150lbs more than yours (plus I weigh about 100lbs more than you). I'm not trying to boast, just point out that it isn't the machine's fault.
Here is a tip: Warm your tires up. Also, watch the road surfaces. Even if you get "stickier" tires, if you hit a patch of light oil, or moisture, you will lose traction in your tire. Practice dragging a knee at slower speeds. You really only need 15-30mph (depending on the bike).
The main times I've had tires slide on me are when they aren't warmed up properly, or the road is slick... that being said, any of the tires on any of my bikes aren't as good as the ones you have.
Also, with your suspension, you are saying you need your shocks softer because of your weight... That is good for the street, but bad for riding aggressively (which you like to do). With a softer suspension, your bike is going to "dive" and wallow in corners instead of feeling like it is riding on rails.
That GP suspension won't help you... it will likely be even stiffer, but have better rebound rate control. Everyone I know of rides stiffer at the track, for the reasons I stated. You are lucky enough to have a bike that is stiff enough for your weight at the track... you don't need new suspension. If you are looking for a softer suspension, get one from an older gixxer or a cruiser or something.
I'm glad they didn't charge you for tinkering with your suspension...
Just to make sure, go look at your bike, and turn your pre-load all the way down, and make sure the dampening rates are down too.
Do NOT raise the rear of your bike for street riding. Even with your steering dampner, you have a better chance of inducing headshake. You also increase the risk of sliding out your rear tire and losing traction easily, especially with your lower weight. You also wear your front tire out a lot faster (and your rear if you are losing traction).
It sounds like the *racer* you talked to probably just knew what was best for him.
"if i can't drag knees w/ the corsa... i might as well quit riding. Laughing"
If you can't drag a knee on a stock gixxer, you just need to practice more. If you don't learn to do it without good tires, then you will only be able to do it on good tires.
This is the whole thing everyone has been talking about.... By learning to ride the way you are, you are severely limiting yourself. You won't be able to go to a more basic bike and ride it to its potential, because you need "the best" parts just to "customize" your bike to you so you can ride it effectively.
I say save the money... dont get tires and suspension. Instead, buy a ninja 250 or a GS500 or something and learn to do the things you want to do before just throwing money at a "problem" which doesn't exist.
I have friends that still rock their 250s and can lean those things over as far as they can.. on *gasp* stock tires.