It's the length of your inseam that matters most, not overall height. I have a 29" inseam, perhaps a tad less, and had the same issue of not getting my feet flat enough to feel comfortable walking the bike around to park it. Holding it up at stop lights isn't really a problem unless you let it get over too far, and then you're not going to hold it up, no matter what. I had the same issue on my '06 SEUC, and now on the '11 SERGU (stock height, which is full height). Keep in mind that Street Glides are 1" lower than your bike, at least in the rear, from the factory. I have Traxxion Dynamics AK-20 front cartridges, at stock height. I installed the Legend Air Ride system on both this bike and the '06 when I owned it. They are not cheap, but drop the rear of the bike 3.25" when fully lowered, and allow me to get flat footed enough to walk the bike around when parking, etc. They have a switch on the handlebar that takes the place of your brake or clutch clamp (whichever side you want it on) that gives you instant control over what's going on with the shock. The bleed off side of the switch is fast acting, opening a solonoid valve to bleed air off the system when you want to lower things.
I do not recommend riding the bike with the rear shocks fully lowered, not because anything is rubbing, but because it rides like a hardtail...not comfortable at all. However, raising it an inch or two is fine for around town, and fully extending the shock when riding two up and loaded, or when riding agressively, is a good ride. The shocks actually ride better under a heavier load than a light one. I have no issues with the rear tire rubbing at all, even on the SERGU, which has 18" wheels, front and rear.
The maximum amount that I would recommend lowering the bike is 1" with standard suspension componenets. Avoid those components for lowering the rear end like the brackets, etc. If you're going to do it, get proper shocks 1" lower than stock, (GOOD shocks, NOT HD air ride shocks that are 1" lower) or go with the fully adjustable air ride type suspension. I am not familiar with the Arnott from a personal perspective, so cannot comment on the quality of the ride or the performance of the shocks.