I have been thinking of limiting my compression on my front springs so they dont negative arch and to keep my tires from rubbing, even though they barely rub.
I must be giving this too much thought because i know its a lot simpler than this, but if i limit my compression, will it also limit the down travel i get?

Also, I noticed Chris Geiger has barely any compression.. It looks like he only has a few inches. Here is a pic of his bumpstops.
http://www.pirate4x4.com/forum/attachment.php?s=&postid=583721

Extending your bumpstops will not limit your droop at all...do it if you feel it is necessary.

Actually bumpstops may help extension travel on the trail. When one bumpstop makes contact it becomes a pivot point, as that wheel is pushed even higher, the other side is pushed down.

The above picture has exactly 3" of space between the bumpstop and frame extension. I find this works well for me. This gives about 19" of articulation measured from the fender to wheel.

On Jon's rig he sets his up with about 1.5" of compression before contact. It works very well for him. Jon kicks my ass most times we go out so he is doing something right.