If you crank the bars up, it will increase the spring rate, not reduce it. While you will gain hight, the ride quality will suffer. Raising it will not "loosen it up".
This brings up a few questions as to what might be the cause of the harsh ride/no give. Is it riding on the bumpstops/suspension bottomed out? Is the ride hight at the correct specification? either of those could cause the problem.
