More sag, less preload, means the rear end squats down more, rakes the front end out a bit(worsens the steering, good for sand whoops)
Less sag, more preload, holds the rear end higher, steering gets better(marginal) can make the ride harsher.
Having the sag on either side of optimum will make the bike feel out of balance and it wont ride as well as it could.
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