You could carefully grind out the 1/8" offending part of the 1 1/4" section of the bars - touch up with silver paint. If you were careful most of the ground/painted area would be hidden by the reservoir. I don't think this would weaken the bars very much - at that point they are actually 2 sleeved tubes.

Or sell those bars and get the British Customs bars which look very nice.

Cheers, Richard
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09 America, Staintune Pipes, K&N, Breathe, Hagon Nitros, AI & O2 removed, tune 20184 (modified), MTX-L a/f gauge