I wish to lower my E34, too. Have buddies that have lowered their E34s by changing to Eibach springs all round, but maintaining the OEM shocks. Looks good lowered with slightly harder than standard suspension feel. Certainly good for our bad roads here.
Do you think the shocks would last long with them bottoming out most of the time ... the OEM shocks travel is now naturally lower.
Advise please before I change to lower/firmer springs.
The standard shock will not bottom out with the right springs - it is just that their stroke is further down and often shorter due to the lower ride height and stiffer spring rate.
That's my setup and I LOVE it - much more responsive, less body roll, less brake dipping and generally a much sportier feel without rattling out your tooth fillings!