If your goal is to get closer to a 90 degree seating position, I think you will get there easier by raising the seat than lowering the pegs. Lowering the pegs does create a lot of engineering challenges as you have to solve placement issues with the gear shifter and brake lever as well as interference with the side stand and exhaust pipe.
The GS riding position is very cramped for the size of the bike. The ultimate comfort mod IMHO would be to lower the pegs and move them forward and raise the seat 2"+.

My current hodge lodge solution is CBR rearsets with eBay dirt bike style lowering pegs. Then I have a airhawk seat cushion and sheep skin layered on top of the seat. I have a raised Top Sellerie aftermarket gel seat on order so that I can ditch the seat covers when I'm not touring.

I was thinking about making a plate that would move the rear sets down and forward but have not yet figured out how to adjust the shift linkage to work in that position.

Additionally, rather than dredging up threads that have had multiple birthdays and haven't been posted in for almost as long, why not create new threads? In general, many of the folks who asked a question in 2012 aren't still here to receive any new wisdom on the subject...but if you've got something relevant to say, you can insert a link to the older thread in your post on the new.

Well, so that people who open the thread get all the information from the beginning without having to wander around among largely redundant threads.  If we were to throw away all old information, we'd have to burn down the libraries.

I had a machine shop weld 1.5" drops on the peg brackets on my GS850G.  It was nice.
Scraping?  Soy viejo, man.  I don't scrape.
(Question:  When did the GS begin coming to the US?  Correct Answer: 1977)

And I raised the seat by a couple of inches too. I really had to fight the upholstery shop to do this.

When I buy jeans I get 38" inseams but I'm old and shrinking so I might have to revise that spec.

Glad this thread came back, I might have to get some of those lowered pegs. I do feel a bit cramped on the gs and I'm only 5'6.5"

@chorbe, relax buddy.

Well I'm just a touch shy of 6' with long legs and arms for my height and the GS500 doesn't feel cramped but I wouldn't mind it if my feet were further forward.

Everyone says "raise the seat" but how? You mean, reupholster the seat after adding more/thicker foam? It will still compress. You'd have to somehow add righd material to raise the solid "base" of the seat. It's going to take a lot to get another 2" of seat height. Major surgery, I think. A different seat would be better. Surprising the aftermarket hasn't supplied this. But it seems like everyone's all about lower seat. I suppose this is "tall person problems".

It would be awesome to move the footpegs FORWARD. But that would require some pretty creative shifter and brake pedal magic as well as moving the actual foot pegs, which seems pretty easy. I would think lowering the footpegs would also require moving the brake pedal and shifter, but at least in the case of the shifter, you could probably just rotate it on the axle. For the brake pedal, well I don't know how you'd lower that.