KD, yep, they're on the fins to keep the oscillating engine parts noise down, like the valve train; they do work on certain types, like two strokes, and at certain rpms they absolutely sing! There are different types of 'donuts'-my Virago has separate, dime-sized plugs set between the fins, and then you gots these strips o' rubber on the GT. I suppose somebody somewhere can tell the diff, but I can't. The RE sounds like a machine should, so I reckon they aren't necessary.
And, every close-up photo I've seen there is at least one of 'em that's not completely seated from the factory, which makes it look even worse. However, they are easily remounted if desired. Mine pulled right off, but if you find a tough one, slip a screwdriver behind it and give a pull on both ends, it'll pop loose.