Jim, another consideration, which Tony mentions in his book, is that having the wheel (either one) move up and back when hitting a bump makes for a better ride. With a dropped s/arm pivot you'll see the rear wheel moving up and forward.
FFers have mentioned that it is important to have a some "spring" in the seat back so that bumps don't jar the rider so bad. You can't "post" on the pegs over bumps as with a conventional riding position. Gurney may have gone to the extra bother on the Yamagator chain run to improve the way bumps are transmitted into the bike.
Owners of shaft-drive bikes (especially BMWs) do learn to not chop the throttle in mid-corner. I've never ridden one of the more modern shaft setups that float (like a BMW paralever) but they should have less jacking in the rear suspension from drive forces.
No doubt the importance of squat effects depends on how fast/hard/powerful the rider and bike are. For high gas mileage and gentle riding they are probably not a huge concern.
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Sorry I did not think of this sooner as it came to me in bed last night.
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Oh good, someone else who suffers from "project insomnia".
I have a bad habit of waking up about 2-3AM and then getting started thinking (for the next 2-3 hours) about whatever project I'm working on.
cheers,
Michael