im guessing with the body up(that is what were saying right?) with each bump your shock is being used and compressing the goods inside. did that make sense? in my mind it did

Please tell what you been smoking, what ever it is, works good. 

Regardless of the position up or down on the can compression and rebound remain the same.

Body up = less damage.  Also reduces unsprung weight.

Well I don't know about damage but the shock is sprung weight and even more so when the can is up.

I have heard that the Ranchos should be wounted with the body/can down.   The reasoning was to prevent air bubbles from forming over time.  But I don't know if its true or not.    Just something I had heard.

Silly wives tales, Rancho's can be run in any position. If your shock sucks air at any time it's time for a new shock, it would mean they are leaking through the seals. Fluid leaks out, air gets in. Think about it how could the position of the shock make it suck air. It's just like the boot myth, my shocks collected dirt inside the boot instead of keeping it out, of course my boots are toys and never get put on my truck.