Increasing preload raises ride height, until you comprimise downward travel, then your front wheel is spending less time on the ground and the forks are banging against the lower stops.
More preload doesn't increase the spring rate, (within the usable range of free sag) so it still feels soggy.
The primary mission for preload is to set proper unlaiden sag. The rate determines how much further it sags with you on it, as well as deflection under load.
I don't think .35 would be too harsh for you twocycle.