In addition:
a longer swingarm lessens the change in wheelbase as the shocks travel.
When ths suspension compresses, the wheels get closer together, and vice versa. The longer the swingarm, the less the rear wheel moves forward for the same amount of verticle change.
This helps the stearing geometry stay more constant in a turn, and while accelerating and braking.
I agree in general with what you've said. However, I disagree about some points. Particularly, the wheelbase increases, not decreases with upward rear wheel deflection - in any case where the initial angle of the swingarm is downward from pivot point to axle. Demonstrate to yourself simply by holding a pencil and moving the free end through an arc.
It is true that a bike is less wheelie prone when fitted with a longer swingarm - but that is because of the wheel base increase, as is the case between the '05 and '06 FJR. The wheelbase increase creates a longer Arm, giving more counter-lifting value to the forward mass(es) of the bike: Force = Moment(Mass) * Arm. Put more weight forward, or increase distance of the same weight from the pivot point (the rear contact patch), and one reduces the tendency to lift the front end from consequent reaction to rear wheel torque.
However, the main reasons for increasing swing arm length revolve around increasing stability because of reduced wheelbase
change upon upward, and then back downward deflection; and also resistence to Jacking or Squating with respectively more and less application of power. It's why BMW's require "solutions" like their Paralever, and FJR's can use a "standard" swing arm. The very short "shaft" of the BMWs "wants" to move up and down with throttle changes much more than the longer swingarm bikes.
Until the new K-series BMWs (K1200R, K1200S, New K1200GT) BMWs had the gearbox mounted behind the engine, and with the four cylinders, even with the shortest "possible' swingarm, that produced an very ungainly, long wheelbase bike. My K1200RS very much does require much more force application to get it to turn. BMW wisely chose a layout like the FJR for their new "Now Very Performance Oriented" models, with the now Transvers four-cylinder leaned greatly forward, and the gearbox "Stacked" atop the crankshaft. This allows the swingarm to be perhaps 6 inches longer and produce a wheelbase that's perhaps three inches shorter than their previous models. The result is a bike that turns in with great vigor, is much more stable during power changes - and over road deflctions, and altogether more precictable and confidence inspiring. Uh.... like an FJR
Best wishes.