I need to set the record straight because it can save your life...
It might not seem logical to you (and a LOT of people) but the physics are real. It doesn't turn the bike faster it allows the bike to be going faster without leaning as much. It has to do with the gyroscopic affect from the wheels spinning.
If you keep your body upright and don't hang off your bike in a turn and you scrape pegs....taking the same turn, at the same speed but shifting weight to the inside you will not scrape pegs...seems weird but it's true!
Shifting your weight allows you to take a turn faster without leaning as much. If you go into a turn too fast you should be shifting your weight FIRST before leaning harder.
It's important because shifting your weight to keep the bike from leaning as far in the turn means more tire patch on the road.
Don't confuse properly shifting weight with douchebags that hang their knee down just trying to get it to touch the ground in a turn.
BINGO. and that was all I was trying to get across.
The other half of that is traction. the more your bike leans over, the less physical area of rubber is on the road. You only need a postage stamp amount for racetrack speeds under ideal conditions, but the road is never ideal. There will be sand, drippings, paint, metal covers, etc. You dont WANT the bike leaned over that far.
So by leaning your weight out over the side properly, the bike stays more upright.
The upright bike has more traction AND more lean angle left to go.
so now you have less chance of the bike washing out from under you AND if you have to tighten your line up further, you can.
Let me ask the question a bit differently. Assume I am making a turn, I am upright, not shifting my weight to the inside of the turn. Still, that is not as fast/sharp, so my pegs will not scrape. However, the road is slippery just enough, say it is wet, so that the bike will slide from under me. Basically, I am taking the turn at a speed just a notch above the traction limit.
Now, assume I took the same turn in the same conditions, at the same speed, but this time I have shifted my weight inside the turn, so the bike is leaning less. Will I have more traction, potentially not sliding out?
Here is where I'm going with this. Motorcycle tires are designed so that they have good traction upright as well as when leaned. Some actually have more traction when leaned vs. when upright. Assuming I have plenty of clearance for my pegs, is there any advantage in shifting my weight to minimize the lean angle? Specifically for the Zero OEM tires in street riding conditions.
YES. Your initial assumption of traction when leaned is incorrect. The bike has more traction when upright slightly, compared to all the way over.. HOWEVER what is even more important is that your weight better positioned. Properly positioned not only is to the side, but also slightly forward. If you just went directly to the side, the rear tire would be overloaded compared to the front. If you "kiss the mirror" with your body, your weight moves forward. the front and rear tires are equally loaded, and the bike will do a nice controllable 2 wheel drift if you were still slightly exceeding the traction limit. That said, sliding is a very fine line that you do NOT want to be doing on the street.
This touches on the unintuitive nature of motorcycle physics.
Am I saying you should be hanging off like a monkey driving around town? No.
What I am saying though, is you should know how, because one day you're going to come around a turn you've done 1000 times, but theres dirt on the road. or a dog. or something. when you lean the bike slides, and your reaction needs to be unintuitive. You should throw your body down more and stand the bike up some. Its not natural. It feels even less natural if you ride bolt upright, compared to someone that normally rides a sportbike. But the physics remain he same.
if you continue to ride a bike down to the peg scraping at speed, while sitting upright on the bike, you may be able to get away with it... since "peg scraping" isnt very low on a stock bike, and its likely you're going slow. Just know that you are giving up a window of traction and limiting your options.
edit: I just googled real quick for a video. This may be more "racetrack" oriented, but just imagine your traction being limited due to the poor environment, instead of high speed.
incidentally, in the US atleast.. every sportbike comes with 3" long feeler extensions on the pegs to make them hit WAAAY early. I wonder if there is some law that says they have to touch by a specific lean angle. Does anyone know?