I wouldn't stop the direction that you are headed with the mounted fender. If you are running it close to the tire, then interference really shouldn't be an issue.
If in the end you need more clearance, buy a set of longer shocks. I'm running 14.7" long Fox Podium R's on my XS. Excessively long for what you would need, but there are many lengths you can get from many companies! If you are willing to spend the money on custom shocks, do that!