I always set the float level to its "normal" position. The only fuel line is from the tank, through a filter, and then to the carb inlet. Vent tubes are routed and vented to atmospher. They dangle below the
Engine cases. There is no return fuel line to the tank or routing of the vent hoses back into the carb or air box. Never ever had a problem with bogging while trail riding or starting on hills. (and we have big hills) The gravity feed eliminated the running out of fuel problems we had with the stock tank and check valve assembly. It also allows for instant starts, no more cranking the Engine for a while, waiting for the fuel pump to fill the bowl. As soon as the shut vavle is opened the bowl is filled.
As long as the needle and seat are good there shouln't be any problems with fuel leakage. The floats are what push the needle and seat closed, so if you have a float sticking or leaking then you won't have as much closing pressure on the seat.
I have not checked the fuel pressure with a gravity set up, but I can't imagine it having any measurable psi vs. the fuel pump set up which needs to open the return spring valve/orifice to return back to the tank and or bypass the return and fill the carb, all of which is a restriction.
The negatives for the gravity feed are, don't forget to shut off your petcock when you are trailering. Bouncing around can cause fuel to dripple into the Engine flooding it or hydrolocking it. The tank can get bent/dented in a hard roll.
The positives, huge amounts of room for carb adjustments and service, no more air bubbles in your fuel delivery system, more fuel = longer rides, more consistant carb tuning, faster cold starts.