Settling = myth. Suspension eventually settles, but it's a slow gradual process as the springs and shocks wear over their life. Once it's on the ground, and moved a few feet, or been "jounced" by having your rear end plop into the seat with the ebrake off, it's "settled." Where's Max?
Can you post some pics? So once the fronts are dialed ALL the way down, the PSS's still don't get rid of tire to fender gap?