Well thanks to arpad_M, I decided to move the harness myself. There are some YouTube videos and his service manual excerpt diagram helped me to accomplish this feat.
So, here we go! I circled the harness connection point that needs to be moved.
Here you can see the actual harness point where it connects to the body. It is a simple push in- type zip tie holder so i just wiggled it out.
I moved the harness back into the body, away from where the tire rubbed thru the wheel well liner and then zip tied it back against itself... there is a lot of slack so i am hoping this won't present another problem. I plan on checking it next weekend.
Finally, I buttoned it all back up and felt around to see where the harness was now in relation to the previous spot. As you can see from the photo below, it is back away from where the tire rubbed thru the liner.
The whole re-positioning drill took me 45 minutes.. that included jacking the car up, taking the liner out, taking the photos along the way, re-installing, and drinking a victory beer!
I hope this write-up helps other 1LE/ZL1 owners with this problem. I do have a GM rep looking into why this is NOT a TSB for those of us with 20" wheels, since the car is made to be driven on track and could have this issue... I'll let you know what i find out.
Cheers,
TC