The (lack of) distance between my upper belt guard and belt has always made me nervous. Is it supposed to be this close and is there any harm in removing it?
Under load it's like a guitar string, it can't rise and hit the guard. Under lift, the belt lowers away from the guard. It breaks up the black on black.. Leave it on. If you pull it off, flip it over, I bet there is not a mark on it from the belt.
But it CAN destroy your belt. It always worried me too, and then a shop put a new belt on too loose and that was it - toast after the test ride. If the belt is crazy loose it will climb over teeth on the pulley when you're wide open in 1st and 2nd gear. That's enough movement to hit the guard and belt is literally chop suey.
I took it off when testing and just didn't want to chance it again even though I watch belt tension like a hawk now. Proper adjustment is tighter than you'd think.