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I think you will be alright. I used to run a 110/90 on the front and 130/80 on the rear of my VF500 for 6 years (not the same set !). At the time I thought it better for grip.

When in gear, if you lower the Sidestand the engine will shutdown, this is normal and not dependent on the clutch switch. As Terry mentioned. Without the clutch switch you will not be able to do an in gear start with the Sidestand Up and clutch pulled in. It will not crank over.

The oil leak is quite impressive but also looks to have been ongoing for a while so probably not major, just persistant. I would start looking at the oil filter in that area, the other spot would be the cam cover gaskets; these can fall out of place when being refitted, or the half-moons didn't get any sealant as they should, or the gasket might not be clamped enough to seal. Don't be tempted just to crank more torque onto the hold-down bolts for these, they thread into the head casting and that easily snaps. You might need to replace the rubber washers under the hold-down bolts as these compress with age and don't apply enough clamping force to the gasket. Another possibility in the same area is the gasket around the spark plug tunnel if that is not seated properly, oil can leak into the plug well and then out of drains under the heads. Not sure there is any other common oil leak point, but given you are in the UK with salted roads, corrosion on the oil cooler lines is something to consider.

"Gaslight" directed by George Cukor in 1944 and starring Ingrid Bergman and Charles Boyer. Basically the bad guy husband in the 1880's in London tries to drive his wife crazy, including turning down the gaslights and then pretending nothing was wrong. Not a bad film for its era. I'm pretty sure this key bit of information will solve your rear shock issue immediately! 😎