Cornering techniques differ tremendously from road to track. When racing, I would get my knee down on the warm up lap to gauge lean angle, but rarely in the race. If it went down in the race, it was a consequence of lean angle, not a conscious effort. As mentioned by Jon, arm position (bent at the elbow), body position (in relation to the tank), foot position (ball of the foot on inside peg, arch of the foot on outside peg (loading weight)) are the important factors to work on. It was Mike Hailwood who never hung off the bike at the TT. The hanging off style has it's place. I do move in my seat when I'm going for it, but not as much as you'd imagine. On the track, I would be hanging off mostly when exiting corners, in an attempt to stand the bike up, so as I could get on the power earlier. But by far the most important part of the corner is corner entry. The whole preparation for corner entry starts happening from the exit of the previous corner. The whole task of shifting your ass, postioning your arms and feet, braking, selecting the gear, and ultimately counter-steering into the corner, has to start early to be smooth, and to be done in plenty of time. Trying to rearrange yourself once you're in the corner will de-stabilise the bike.
Save the knee down antics for track days mate. I can ride faster and smoother on the road than someone trying to get their knee down. And in fact, take great pleasure in riding around someone mid corner, who is doing exactly that...
