[johnnyrod]

You can go for the inside or outside peg, but either makes it feel more stable. Not sure why as the actual C of G doesn't change, maybe it is more about letting the steering do its thing. Personally yes I do this all the time, whether dangling off or not. I favour the outside peg and inside bar to put your weight through. You can use the inside peg instead but if it grounds out you lose your control. Also when you go for dangling, the outside peg allows you to push yourself over to the inside more easily.