When I had my Fatty, the GF did not like the pegs at all. Switched the boards and it was a night and day difference for her. Seems to soak up the road bumps/vibrations more than the pegs, and allowed her feet to move around some too. Thank goodness the boards came standard on the RK.
When the boards are down you hit them with the back of your calf. But the Streamliner boards are angled and smooth. It doesn't hurt or are much of a bother, but you will feel them more than the pegs even if up.
When my daughter is with me I hit the passenger boards more often than I like. Between my own extended floorboards and feet the size of a kangaroo I try to only walk the bike before she gets on, and rarely take my right foot off the boards at a stop unless absolutely necessary.