The shorter spring wont affect the overall length of the shock. The force of the spring will stretch the shock to it's full extension as long as you have preload on the shock (which is sounds like you do).It's a gen 3 bike. I've dialed all the rebound and compression out. The bike needs a bit of force to turn.
I replaced the rear spring. It was slightly shorter than the standard one but I have good sag of 31mm. Front sag is 36mm.
The other option I'm looking at is dropping the fork tubes in case the slightly shorter spring has altered the ride height.
The turn in is generally not caused by improper damping settings, but by geometry issues. Geometry can be broken into two categories, static (ride height) and dynamic (spring rate and preload which determines where the suspension sits in the stroke). SO by your description the bike wont turn in on entry would suggest your bike is sitting a bit too high. Two options you could try would be take out some preload in the front (generally 2 turns will give you noticeable results either positive or negative) OR lower the front a few mm and see. Each has it's advantages and disadvantages and without knowing more info would be a good starting point for you.