Well you know what they say, don't knock it till you try it!
You would be shocked to find out how physically and mentally demanding lift served biking is. And getting on a DH bike for a day at a local resort will push your riding to another level. You learn so much about control, speed, and the ability your bike has to monster truck over things. The first time I rode a full on DH bike at a resort I went back to my hardtail when I got home and found I had a whole new level of control and confidence that I never had before.
But I digress... back to your original question. You should always set your bike up to use the full amount of travel that you have available (this is where setting the sag comes in;
video example!). Remember, every fork worth owning has a mechanism for adjusting how firm the spring (or air spring) is. Sometimes it's as easy as pumping up an air chamber, other times it will require swapping springs in the internals of the fork. So in your example, if you could only ever compress your 5" travel fork by 4", then you would need to adjust the spring inside the fork so that you can compress the fork to the full 5". I fear I've made that very complicated, so I hope it makes sense.
How much travel you
need is more based on your personal preference. Along with simply the compression distance (i.e. 3", 4", 5"...) you will typically have a bike that is built around that fork length. You get differences in geometry, in particular with a 5" travel forked bike you would get a more slack angle to make steep or rough terrain easier to handle. Now, I'm one of those people who only go up because the downs are so fun so take my advice for what you will; but I will always pick the largest travel bike that makes sense for where I am riding. I either choose my singlespeed hardtail with 80mm of travel in the fork, or my full suspension bike which is 160/170mm travel front/rear. Sounds like a lot, but in many situations the extra suspension helps me climb things that would be much more difficult on a hardtail or shorter travel bike.
Set your suspension up to your weight and run it. If down the line you're looking at a new bike, then try out some different styles of bikes and see what suits you best. As long as you're pedaling, no one can fault you for your bike choice :thumbsup: