Other option is buy 1 inch lowering shocks on ebay i bought a pair for my buddy for under a hundred bucks. Also those lowering kits you are talking about do work but with the leather wrapped bags they hit because the shocks are now kicked out on the bottom. some say changing the shock angle affects the bike but its not a proven fact. i had the same problem trying to decide how to lower my road king but i opted to go with the arnott air adjustable shocks. more expensesive but affective
I tried a lower kit on my Ultra and along with bottoming out on almost all the bumps, changing the shock angle made the ride very unstable. Shorter shocks are the way to go for lowering your bike as the dampening prevents the bottoming out problem I got with the lowering kit. Below is a list I found here on the Forum and used for reference in shopping for shorter shocks. I'm running the 54661-02A's on my Ultra and it rides great. No bottoming so far. I still have the lowering kit in my used parts pile as a reminder to do my research first.
54565-09 FLH FLHT FLHR FLHTI 13" (G5E3-00)
54565-97 (A) FLH 13"
54631-02B Road king FLHRS or FLHX or FLTRX 12" shock pair "low profile"
54632-98 bagger 12" or 12.5
54661-02A Road King FLHR Street Glide 12" single shock "lowered"
54662-09 street glide 11.5"