Where the footpegs mount to the frame, I cut off the collars from the main part, then had a friend weld them to the top side. This moves them down and back a bit. Another option, I think IMS sells pegs that are lower.
Why couldn't just not weld the collar in place after moving it to the top of the peg? The pin will hold it in place. My '08 has titanium foot pegs and I highly doubt anyone in my area can weld titanium stuff.