What should I do to make it "proper"? I rode this bike before messing with the suspension. I have ridden friends bikes set up for MX, Hare Scramble, Enduro, etc. I still like being able to touch the ground. If you have any suggestion for me to make it better, let me know.
Because you have the desire to touch the ground fulfilled, changing anything will most likely result in your not liking the bike. It's not that your setup is wrong more then it might not be getting optimal handling because of the lowering. If you can touch and your happy, there isn't really any other better solution.
Ultimately lowering the suspension internally would be the ideal ticket but that comes at a cost.