I would plan on not having a chain failure instead of reducing the gap to prevent chain bunching. I kinda don't think it matters how much room you make for bunching anyhow. The momentum of the chain will probably force its way anyhow.
Had a chain throw on a CB750 and it broke off the front sprocket guard, which is replaceable. Would be weird if your bike is designed to just destroy the engine case.
Regarding gearing, your plan sounds reasonable to me. I'd probably get 60 MPG on my bike if I could get some tame RPMs at reasonable speeds.
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