yogidabear,
I experienced 1 or 2 very harsh "bumps", not bottoming but very harsh, could be the "air" compressing like you say. I stiffened the shocks by 2 clicks. One can feel a bit of "harshness" on tar now. It does feel slightly more planted in corners though. I thought to get used to the "harder" settings as this is what I will run when the bike is loaded for travel. I must also admit, I'm not too knowledgeable about shock settings. Trail and error will suffice at this stage.
I only read the manual after my first dirt ride, was toying with the TC on the move. Very handy feature, don't know why Honda does not recommend it.
I suppose your TC setting will depend on factors such as terrain, speed, weather and type of rubber your'e running.
I agree, the stock tires is suitable for light off road work, forest or farm roads and reasonably decent district gravel roads.
I will be trying out the Capra Anlas X tires soon.
I also learned that the stock hand protectors is worthless, mine broke after the bike fell over on the lawn whilst being washed

, will be fitting a decent set soon.