LUV, I think my bar was into the bags when aired out because I had it mounted directly to the frame and may have located it slightly aft of stock.
I just measured the pieces I cut off my cups and they are 1" (minus the thickness of a cut-off wheel
). My cups were RECENTLY purchased from SD and shipped as 2.5" total height which I reduced to 1.5". It looks to me like Jimmydean's pictured cups are 1" taller than mine.
I think my bags touch the arm (only when aired out) no more than they contact the upper plate (but slightly less uniformly).
Also, I don't have the exact ratio but if you cut 1" from the cups it should give you about 2" more drop since the cups/bags are about 1/2 way out on the arms.