Yes, that ties in to my point that "flat is fast". Excessive heel is not fast on any boat, and flat bottoms should be kept as close to flat as possible. That is why you see racing crews hiking hard on the rail while sailing upwind. It is very important to make sure you have just the right amount of sail area up for given conditions. The Macs sound like very tender boats, and as such, require you to reduce sail much earlier. Personally I can count the number of times I've reefed the main on one hand. That is because the boats I sail on, and my own boat have full inventories of headsails for all conditions. I hate reefing, and consider it to be a last resort!
Reefing the stock genny will raise the foot of the sail to a point that it will drive the bow to leeward. The stock genny was not designed as a "reefing" head sail---only a furling sail.
I'm not sure where you are coming from on this one! There is no reason why the foot of your genoa must be at a certain height. As long as you have enough adjustment in your lead position to maintain decent twist, it doesn't matter how high it is. The only reason race boats use "deck-sweeper" genoas is to use the deck as an "end plate" preventing spillage under the sail. Many #2s, #3s and storm jibs have high clews.
Scott, I hope you don't mind a bit of critique.....

Your mainsail looks WAY too full in this pic. It looks to me like you just pulled your halyard on hand tight. You need to get that puppy on a winch and CRANK it! If you have, and it still looks like that, then your luff rope has shrunken, and you need to get it redone. It's harder to see fullness in the middle of the sail, but judging by the wrinkles and the curvature of the shadows I would say the whole sail is much to full. you need to crank on that outhaul!
The thing that I notice most out on the water is that alot of people seem to be afraid to pull things tight! Don't be! don't think of your rig as a "clothes line" that you hang your sails on! Think of it as a frame to stretch it out on! Don't worry, sails are designed to be stretched that way!
