The deforming/heating from lowering the pressure also leads to blow outs. And decreased fuel efficiency.
I'm a bit wary of the Cheng Shin tires, especially in the rain. Sure, they should be allowed to be sold, but I don't think they should be stock. I didn't realize they were on Kymcos, but my old Yamaha scooter had them. Half helmets are also DOT approved, but less safe.
Kendas have glowing reviews though, and I never had a problem with it on my rear wheel.
As far as the wheel size goes, I don't think it makes a difference for the contact patch area, just the shape. Fat and short for small wheels, long and skinny for large wheels.