[Grog6]

Relocating the rack is going to change the steering geometry, and it could have issues like bump steering itself. . Check it thru its full range of motion with the front socks off so you can move the spindles around. if it binds up anywhere in its range of motion, you'll have to fix that before you drive it. You wont know about issues until you drive it, but I'd expect the handling to be different.

 

[Grog6]

Wouldn't lowering the K member an inch move the control arms and rack in a similar manner, making this a mute point? Or is there a reason that wouldn't be done?

No, enerything is mounted to the K member;it just makes the body an inch higher.