I never liked the look of my V7 rear lights. I like the lights, but all the 'extra' stuff hanging down really detracts from the look of the bike IMHO. I took the side reflectors off and that helped, but I really wanted to tighten up her arse... on a budget.
Here is where I started:
Some work with the dremel, and a couple of holes drilled to relocate the license plate light a bit higher, and she now looks like:
I know some folks don't think it a good idea to remove reflectors, but I can't stand them. If a car behind me doesn't see my brake light then I just don't see them acknowledging the reflector. Anyways, I'm pretty happy with how it turned out. I did buy a chrome license plate frame with LED's, so I would eliminate the light and lose another inch back there, but I didn't feel like doing the wiring yesterday.