i've got the backwards engine set-up, with the exhaust coming out the rear. all of my pants had burn marks which turned into holes after washing, my leg has a nice burn scar from riding in shorts, all my right shoes have burnt heels...
once i wrapped it all up in header wrap i've got no (new) problems, and have an interesting variety of patches on my pantlegs.
on bikes i've built with the front exhaust, the toes of my left shoes would rub now and then, leaving a white streak of rubber to burn off the pipe, and a clean spot on the shoes.
none of this bothers me at all (except the burn, before it healed.)
and btw, i hate rack mounts, too. big ones mounted in the back remind me of outboard motors, and most little ones are slow and goofy looking.
in my opinion, an inframe motor is more appealing to the eye, and i've never seen a rack mounted motor that looks cool whatsoever. i don't think i'd ever build one, but if i did, i'd put a milk crate or something over it so it wouldn't look so ugly. so, also my opinion, to me, a milk crate has more visual appeal than a rack mounted engine.
so there...