I'll just comment on the oil. Let the air out with the pump connected. There is only a little bit of fluid in the DPS to keep the seals lubed. If you let the air out without the pump connected it will come out too fast and pull the oil out too. I set mine for 30% sag which for my light weight do no allow me to use all of the travel. I'm going to try 145 psi my next ride since I'm using almost all of the travel now, weight is 160 lbs with all my gear on. So I'm sort of at the opposite extreme to you. I had to take out the one very small volume spacer that was stock, you might in fact have to add a larger one to make everything work.
Oh I forgot to add it's important that for every 50 psi change that you remove the pump and cycle the shock up and down about 10 times to equalize pressures. The put the pump back on and continue/repeat until you reach whatever set point you are after.
Really appreciate you taking the time to reply and the information - all makes sense. I think you are correct on the spacers, definitely need to add some. and probably over time an upgrade of suspension would also be beneficial.
Happy riding. Thanks again