Yes, suspension is the only way to go. That first so you can actually control the motorcycle properly.
F2's liked having the tubes raised up above the triple clamp about a quarter of an inch. Seemed like we had the rear shocks set at the stock ride height. Get a good suspension shop to do some work and to point you in the right direction on how it really should feel.
As for racing fuel....
Horsepower will win races when everything else is equal; rider, suspension set up, traction, etc. etc.
Engines need air and hydrocarbons to move the pistions to create power.
Gasoline works pretty good in a road racing motorcycle in that it has a quick flame speed. However, it does have limitations.
Racing fuels are all over the map. Your locally available racing fuel and track fuels are fuels that were designed in the 1970's. They do produce heat, debris, and a slow flame speed. To say that "racing fuels burn slower" is incorrect. There are some fuels out there by companies like Power Mist, Nutec, VP, and some others that are good. Prices will be more than the locally available fuels, some will be more than $14 a gallon because they are oxygenated. (Put oxygen in the fuel, you get oxygen in the engine, you get more air to burn and more power.)
The trick is that each fuel, including gasoline, has a certain weight, a specific gravity. Only so much fuel can go through a jet. If the fuel is heavy, like gasoline with a specific gravity of .755 (water is 1.0) you would need one particular jet. If you put in a fuel that is lighter like Turbo Blue Leaded with a specific gravity of .74, it would run rich (too much fuel). Why? Because more of the lighter fuel (more burnable hydrocarbons) would go into the engine through the jet and the amount of air entering would be the same. You would have to put in a smaller jet.
Lets say you put in an oxygenated fuel like Power Mist TO137. It's specific gravity is .745 but it has 5% oxygen. Because it is a lighter fuel, you would normally put in a smaller jet. However, since it has oxygen in the fuel, more air is going into the engine. Your jetting might be the same as gasoline.
Clear as mud?
Seems like we used 130 main's in our F2's using T111 Power Mist racing fuel. I'd bet using gasoline you'd use a 132.5 to 135.