The spacers aren't there to create a gap, but to fill it. The holes in the engine case are more recessed on the DL than they are on the SV (Which the R&G case cover is designed for). Without the spacers, you would be pulling the R&G Cover closer to the engine case, but wouldn't be pinching the engine case and engine closed. I'm looking in to the foot peg lowering kit. Ideally I wouldn't want to lower them as I do green laning. However! looking at the lowering kits, I noticed there is a plate that goes between the bike frame and the newly lowered foot peg. I'm wondering if just the blank plate and longer bolts would move the foot pegs out enough to allow me to raise the brake pedal some more.
My second option is to drill and bolt something to the foot pedal itself. BMW *Washes mouth out with soap* have a multi level attachment that you can bolt to their foot pedal. I'm not opposed to the idea, if anyone knows of it being done before, links or advice would be appreciated.