Lowering blocks are great, my mate Dave who bought is K2 new is probably 5'6" tall in his bike boots, so he installed them on day one, along with a re-sculptured seat, and did over 100,000 miles on it until he bought his Harley, which, once again, has a much lower seat, Honda CB750's were very tall in the saddle even compared to Z1's etc.
If you use them, make sure you re-adjust your chain, lowering the rear will tighten the chain, and you want around an inch of play in the centre of the lower chain run. If not, you'll destroy your output shaft bearings.
If you decide to pop for a lower seat, I'm looking for a good original K1 seat for my upcoming K1 resto, so am happy to buy your old seat if you need some bucks for a Yamiya seat.