Hi,
On some of the earlier bikes, and on the V20, for example, going to 26" from 700C wouldn't buy you anything, because the fork narrowed about half-way up for aerodynamic purposes. If you look at the S40 product page, you can see that the S40 fork is straight-legged, not narrowed. So you might be able to go up in tire cross-section if using a 26" wheel.
CB went to a lot of engineering effort to broaden the usable tire size range on the S40. Perhaps an owner can measure the fork clearance for you.
Hope this helps a little bit.
Best,
Doug