@ #8: The "Trials Universal" tread of the Dunlop K70 & Duro HF308 are suitable for dry "fire road" & jeep trail conditions. They do very well on a dirt surface with a thin layer of sand or gravel. For street usage around here in the mountain foothills, they lend confidence when encountering the occasional patch of sand, leaves, pine needles, dried cow flop or gravel that make their way onto the macadam mid-corner.
The larger sizes do two primary things: a) allow lower tire pressures so the tread conforms better to the terrain (26-28 psi), b) provide more surface area to support the combined weight of rider & machine on loose surfaces. This equates to better traction on loose or skatey situations.
An additional service they provide is a useful increase in tire strength and load carrying capacity. The 3.50 is rated at about 500 pounds, the 4.00 at 750. A bullet weighs about 400 pounds, the rider and any luggage can easily add another 250 - 400 pounds. With the larger rubber you have more reserve. If you manage to hammer a wheel into an unseen rock, the thicker rubber provides more rim protection and flat resistance as it provides greater volume & thickness to absorb such shocks.
IMHO, the stock rubber 3.25 & 3.50 sizes are "250 rubber", intended more to save money at the factory end, best suited for a machine weighing under 300 pounds. To me, the mass of the Bullet demands more footprint. The larger tires are more suited to the knockabout utilitarianism of the machine.