The stock exhaust is not the limiting factor. I've made 44 plus hp on stock exhaust.... Best bang for buck is a K&N filter, lid mod, and PCV. That makes way more gains then just an exhaust swap. Yes the stock exhaust is very heavy. If you are looking for performance cheaply start with the above items.
http://www.rc390-forum.com/forum/ktm-performance/1169-engine-build-stock-hard-dobrs-rc.html
with decating the stock exhaust how does it sound now? is it more throatier?You can decat the exhaust by cutting through 3 layers of steel on the bottom with a hole saw. Then you gut the cat with a deep holesaw/punch, etc.
As for shock damping, there is no compression damping to speak of. A replacement or revalve of the stock shock will transform the bike, even with the stock exhaust.
-Sean