Here is my experience.
What I gained: The front end now feels completely free of stiction and resistance. This was not a big concern prior but now the bars turn left/right more freely. It is very fluid and smooth with no damper.
No more wander/wobble/weave. The front would hunt back and forth at slow/moderate speed. Again, not a big concern but noticeable. We have all read about this complaint in tests and some have a problem with it (me) while others don't seem to notice.
Steering dampers are needed in extreme-use high speed racing conditions. Nobody that rides a K12S on the road has a use for it. A stiff damper set for racing conditions would negatively impact handling on the street. I took the damper off and the slow/moderate speed problem vanished and the high speed stability remained.
As far as road conditions, I have ridden all types of roads in my area with the damper on(about 3k miles) and about 1k with the damper removed. My speed ranges from stop and go to about 140. Last weekend I was riding with a buddy on an 03 ZX7r and we were riding agressively. My friend was backing off on his Kawasaki for whatever reason and I still felt in complete control on the BMW. What I'm saying is the steering damper or lack of it was not destroying my confidence in this bikes handling. I would say the opposite is true. Without the damper, I can feel the front end better and have MORE confidence. Remember, the damper is there to restrict movement in the steering. I still think the bike doesn't need it by design. The KS is not a quick steering sport bike and the damper was put on to give a measure of reduced performance at high speed as a compromise. In other words, the legal team won out over the engineers.
I tell you honestly that I have seen no difference in high speed stability. There seems to be a fear that without the damper, the bike will shake its' head and rip the bars out of the riders hands. There has never been even a hint of anything like that. With the steering geometry and wheelbase of the bike, I have never even worried about it.
Mal, did you manage to get those passenger pegs off? Post up a piccy of your bike when you can.