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Just in case anyone else needs to fit a KS Lev post and it's too long:
I finally got around to using and old, spare KS Lev on a frame that's had a regular post in it for ages as. The 125mm drop post was just a little too long for the frame, hence why I've not had it in use. Having concluded that the pain of getting the top position right each time was a better compromise than not having a dropper at all, I've ridden for a month or so with this "solution".
Trying to work out a proper solution, I realised that the bottom cap is only really there to hold the actuator into the bottom of the post when dropping the post. It does this with a tiny bevel on the inside just next to the thread. The rest of the bottom cap after this bevel is just there to keep out any muck.
So, I removed all the rest of the cap, filed it smooth and now the cap is more of a custom nut with the actuator sticking out the bottom. With the actuator in a suitable position to maximise the space around the pivot obstruction in the frame, I think I've manufactured myself around 30mm of extra seat post insertion.
I can now use the post as intended and don't need to buy another one. I've made sure that the actuator assembly is well greased to help avoid extra corrosion should there be water in the frame or anything.