No doubt there will be subsequent posts to correct any errors I make in this reply, but here is a start:
The SRT-8 suspension sets the car 1/2" lower than the standard model. The springs are stiffer and the shocks are heavier-duty for better control. There are many other differences but I assume you are only looking at the springs and shocks. Or maybe just the springs...
Regarding after-market springs, Eibach is the premier spring supplier, and they build a good product. The two types offered for the 300 is the sportline, which lowers the car 2" and the prokit which lowers the car 1.6"(appx). I believe the sportline also has a higher spring rate.
The bottoming out problem occurs when the car is lowered too far, or if the car is lowered by cutting the stock coils rather than installing proper lowering coils that are stiffer. What happens is the car's suspension compresses to the point that the suspension stops hit the rubber "snubbers". This makes the suspension bounce back and causes the car to "pogo". You see it all the time with the rice-burners who have cut their coils to the max. I first lowered my BMW by cutting a coil and the car pogo'd like crazy. I quickly installed Eibachs and trimmed 5/8" off the ends of the snubbers. This solved the problem, but I also installed Bilstein struts to get better control.
If you lower the car with just springs, then the springs will over-power the shocks and the handling will not be optimal. O.K. for cruzin, but not if you really want to improve the way the car handles.
So, you can cut the stock coils just for looks (you will end up doing it over later), you can install Eibachs and improve the handling and the looks, or change both springs and shocks and greatly improve the suspension.
Another option is to install the springs and shocks off an SRT-8. Since so many owners are installing KW coilovers, the old suspension is often available through here or eBay. I just saw a complete setup go on eBay for under $400.
I have KW coilovers (they replace both springs and shocks/struts) on order, and once I receive them I will sell the original suspension. Let me know if you are interested. The SRT-8 wheels will follow
Reviewing what I just wrote, I realized that I have never seen any posts here regarding replacing the shocks on 300's with Bilsteins or Koni's, etc. I have always upgraded shocks/struts when lowering a car. Not always at first, but sooner or later when I am fed up with the handling. But I am a fairly aggressive driver. Maybe others have not had this problem with the 300... ?
Regarding the longer stock shocks/struts not working properly with a lowered suspension, this has been a point of arguement for years amongst my gearhead buddys. The valving within a shock cannot tell when it it operating lower in the tube; it is only when it reaches the bottom that things would go awry. None the less, the KW struts are shorter to better operate on a lowered car. I would like to hear feedback on this phenomenon.
O.K., I'm getting a glass of wine and wait to be blasted with conflicting opinions...
