I wouldn't recommend trying it. First, motor oil isn't as effective at removing heat as a proper coolant mixture. Second, the system was designed for the viscosity and flow characteristics of a proper water/coolant mixture, not the higher viscosity motor oil you envision using. Even if you redesigned and replaced all the component parts to work with motor oil, you would still wind up with a less effective cooling system than what came stock.
If you want to add oil cooling to the existing engine, all you have to do is add a real oil cooler similar to what they did with the bikes without water cooled heads. There are many options on the market, including one that fits under the bike (and whose name I forget) that would eliminate the space problem at the front of the bike.
Jerry