I race bikes, so I have some perspective on this. Here's start of race at Sears Point Sonoma Raceway.
While lots of ideas were covered relating to "knee out" physics those may more effect rather than cause. Also some are completely unrelated at all. That being 3-wheel side-cars vs. 2-wheel bike. With 3-wheels, it corners like car and requires turning steering into corner. The monkey hanging off side is to countreact lateral weight-transfer that's trying to tip it over. Moto on other hand only uses steering to initiate leaning and once desired angle is reached, steering is aimed straight ahead again. Centripetal force pushing bike into circular-path is generated by tyre's camber-thrust.
Here's an overview of cornering angle, it's dictated by angle between effective COG of bike+rider and ground.
Note that distance (height) between effective COG and contact patch makes no difference. In steady-state cornering once lean-angle has been set, tyres ony notice that there's certain vertical-force from rider's weight+bike's weight, and lateral centripetal force from cornering. Rider can be sitting on 10-ft high-chair above bike, and it will still corner exactly at same speed as another bike with rider tucked in at same lean-angle. Obviously if lean-angle is 45-degrees, vertical and horizontal forces are identical and bike corners at 1G. Here's table of lean-angles and resultant cornering-G.
Notice that function is not linear? Well, up to 45-degrees, it's fairly linear, and increase even faster than that. Going from 45-degree to 60-degree lean generates double cornering force. Here's roughly lean-angle maximums for various types of tyres.
Different rim-wdiths, casing constructions and rubber compounds allow professional race-bikes to achieve extreme lean-angles and cornering speeds. Race-tyres only has to last about 100-miles, so their super-sticky rubber-compounds have incredible grip.
Now, why is there lean-angle limit and what happens if you go over?
You roll off edge of tyre and crash! Street tyres tend to have flatter profile and won't handle too much angle before rolling off. DOT-R tyres, soft-compound street-legal tyres tend to have more triangular profile so that when its leaned over, it has larger and flatter contact on ground. THIS is why racers stick out their knee, as an angle-feeler gauge to compliment the excellent angle and G-force measuring device known as ears.
You see street-riders street-riders trying to out-macho each other by seeing who has least amount of "chicken strips" on their tyres. These are those unused stripes on each side of tyre. And they brag about "getting their knee down", which is supposedly some indicator of skill.
For racers, it's exact opposite. We try to keep tyres off edge as much as possible to not go over and crash. Knees are used to gauge how close you are to edge, as such, it's only done at maximum lean-angle. In slow/medium-speed corners, where I may actually tip out knee tiny bit and if there's slight rub or kiss, then I pull it back in, once I know how much lean I have. For high-speed corners where I'm not even going to use fulll-lean (i.e. turn-1 @ Laguna Seca), the knee stays tucked tightly in for aerodynamics. Sticking knee out at those speeds, causes an immediate 3-6mph reduction in speed.
So how can you corner even faster once you've leaned up to tyre's edge? By recognizing that effective COG is combined system of bike AND rider.
By shifting entire body inside of bikes centre-line, you've effectively moved COG towards inside of bike. This bike+rider system at 39-degrees lean, has an effective lean-angle similar to previous picture of 52-degrees. It can corner at same speeds for less lean-angle! This gives you overhead to lean bike+rider more to limit of 55-degrees while not rolling off edge of tyre at 50-degrees like before. Here's some examples of moving entire body towards inside to keep bike as upright as possible for more cornering speed.
Another benefit of hanging off inside and keeping bike more upright, is you can use more throttle coming out of corners for higher top-speed down next straight. So really, knees touching is not cause of higher-speeds, it's just tool to allow rider to know how close they are to edge of tire and maximum lean-angle.