Find out what oil is in the bike....if it is a car oil with friction modifiers....that is what is causing the clutch slip.

You might have some luck if you change the oil and use a proper oil like Rotella T.

Does it hurt to have a slipping clutch - it isn't a great thing to have happen, and likely the more you ride it the worse it will get.  Eventually things will wear out and require the replacement of clutch discs - which isn't all that cheap.

How long does it take to remove and clean the clutch discs.....I have no idea of your ability or what is in your shop.  I could get it done in a couple of hours and I would have a clutch cover gasket on hand in case that tears when you take things apart.

The Rotella did the trick! No more slipping. Thanks for the lookout!

Alright so now that I've eliminated the expense of prettiness from the equation I can focus on functionality. And having another bike to ride that is good for commuting and long trips I no longer have to be concerned with practicality of my S40. In fact I am enjoying my Thumpy more than ever now that I'm not worried about matters of practicality. Now I just want it to be more fun, and safer. It doesn't have to go on long trips or commute me through road rage hell on moon cratered highways each and every day.

So safety 1st!:
1. Look Ma no brakes! I'll be fixing this with the Ryca brake kit and better brake line.
2. Better tires. That back Kenda is absolute garbage and has to go away. I ride on a lot of heavily grooved surfaces so I'll be focusing on tires with good performance on that as well as wet roads.
3. Fork brace. The bigger rear shocks helped the steering considerably making the bike handle better on twists. Now I ride it much harder as a result but something still feels wrong when i push it really hard. I'm guessing it's fork flex. I'm still trying to grasp the concept enough to test for it...

Any more safety suggestions?

Engine stuff:

1. The cam chain tensioner
2. I've been doing my homework (mostly in here) and have changed my mind about the carburetor. In fact I'm going to focus on the entire flow side of things including air filter, exhaust port and header pipe. I'll be bugging folks for more specifics with all of this once I've digested all of the sources I've searched up in here so far.

I no longer need to worry about how the engine performs in stop and go traffic or be concerned with gas mileage or other practical concerns. I just want more fun! Thumpy is to be a hot rod from now on.
All practical concerns fall on my other bike from here on out.

Ah but yes there is the other bike and its expenses, as well as my better half's bike too. So I need to rethink the financial timelines for this. Obviously all of the above is going to take much longer to implement now. So one step at a time, and plan those steps out.