No one seems to be able to explain this to me, so I'm not buying it. If the compressor comes on as a reaction to the location of the rear autoride servos, and they react to the length of the autoride links, then what's the difference if you take the spacers out and then LENGTHEN the links? The way I see it, you're just putting more air in the shocks by having the links set longer.
Unless you're looking to firm up the ride -- which I am not/wasn't -- then I don't know why you'd be interested in pulling the spacer and lengthening the links. The only reason I could see for doing this is 1) if you want a firmer ride while keeping the rear as low as possible, or 2) if you want a lower ride that's softer, and you've shortened the links to the max (2.5") and still want to be lower.
On my truck, with the spacer in and the links shortened, I can not go ANY lower, or the truck will be sagging in the rear. Also, my rear shocks are closer to the intended travel with the spacer in. With the spacer out, the truck would sit lower and the shock travel shortened, and the axle brought that much closer to the bumpstops. In order to not contact the bumpstops/frame, I'd have to cut the stops brackets off (don't want to do that) and get air into the shocks to keep the rear from sagging -- and this kicks the compressor on and stiffens the ride. I don't want that.
I'm not saying that none of you guys should set your trucks up this other way. You can do whatever you'd like. Tony loves his truck set up this way. For me, it makes no sense to do it this way, visually or ride-wise.