For what its worth, i debated this too. Just installed mine last week and went -1. Set it on the ground for the first time monday and that thing is LOW. I still can't seem to understand the mechanics of how the system works, that not adding the second spring and adding preload adjusters would make it taller... but it's pretty low now with -1. And I think that largely has to do with most running -2 have a 21" wheel which is taller by over an inch.
I know that doesn't answer your question on the dented fenders, but I guess where i'm going with that is the -1 is more like -1.5 and you should eliminate the risk of hitting your fender. I'm glad I didn't go lower because mine would be going down hill. I almost put in another preload clip to bring it up a 1/4 inch per progressives instructions.
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2012 FLTRX, Agitator Wheels (19" & 18"), Chrome Forks/Bells/Flush Axle, SE Stage 1, D&D 2-1, Power Vision with FM Map, DG Buttcrack, Misc Chrome