Perhaps the biggest mistake people make is thinking that, for fast riding and things like track days you need everything in the suspension to be set has hard as possible.
Here's a YouTube video on how suspension guru Dave Moss goes about getting a decent base suspension setting.
As you can see, preload is set using a sag measurement, with rebound set to match the spring energy. For track use, the compression damping will probably need to increase. If you read this latest news piece by Dave you'll see how suspension settings can affect grip and tyre wear - check out the review from Losail.
Long story short, it is entirely possible to set your bike up too hard for a track day, let alone road riding. Telemetry can tell you a lot about how whether your suspension is working well but so can the state of your tyres and, just as importantly, how you feel on the bike. Frequently, softer can be better. So long as the suspension isnt pattering or pogo-ing, softer suspension usually generates more grip and more feel for what is going on.
You can benefit from Dave Moss's suspension wisdom at www.feelthetrack.com