These settings give the bike a more natural feel in the corners and jumps, making the turning, whipping and scrubbing feel more smooth and realistic.
There are many other configs that can be used to achieve the same effect, setting up the bike with a more realistic configuration will not make the bike much faster, but will increase the immersion and feel. Good for racing against the Ai for an extra challenge, but to keep up with fast online players the stats will most likely need to be maxed out. This game needs a 'Pro Physics' mode where the bike isn't over the top fast with crazy traction and turbo clutch boost.
Other good more realistic setup:
Tires: 3
Suspension: 3
Brakes: 3
Sprocket: 6
Engine: 6
Clutch: 6
song:
Never Surrender - Lion