Sorry Steve, I don't get it - maybe it's late or maybe it's old age..........The thing that keeps the shock extended is the spring, add weight (rider) the spring compresses and the shock gets shorter. Take the shock off the bike, the spring decompresses and the shock extends. Remove the spring and the only thing acting on the shock now is the damping, this just controls the rate at which the shock extends/compresses. Therefore if you fit a shorter spring the shock will compress further when fitted to the bike and therefore be shorter. The only issue will be a reduction in travel over the original spring.
As I say this makes sense to me - but then so did the Merlot a couple of hours ago.
Cheers Jim