I thought about the forward controls also... I'm 5'10" so you'd think I'd feel ok with the forward controls, but with the drag bars I got on my bike my arms are stretched out pretty good already... I think it might feel awkward having to stretch out my legs too when shifting and braking...
I think you'd be surprised. I'm 5'7 on a custom which has forwards, and I actually just put a nightster seat on it, whcih brings me forward a bit. I couldnt imagine riding it like that with mid controls. but i like stretching out too.
I'd do one or the other. Either just do the forwards or do the guard with highway pegs. If you're thinking about the engine guard for protection reasons, then get it and do the pegs. If you're considering the guard just for looks, then go for the forwards. I just put an engine guard on my Sporty and I really like it. It's not quite as wide as the forwards so it's not an issue when I'm spliting lanes. I don't know if I could even put highway pegs on the guard with the forwards on there. You'd be resting your heel on the brake and shifter all the time.
You must have a lot more flexable back than me, I just sat on mine with drag bars and tried to put my feet up where highway pegs would be and I don't think I could stand that folded in half position very long.