I was changing my front shocks today and noticed my front end is always resting on the bump stops....is this normal? I don't see how the shocks are doing anything if it just sits on the bump stops all the time.

 

GM calls them springs. They are a progressive compression design and are an integral part of the suspension.
Years ago I checked three on the lot and all were of course at about 22 1/2 inches wheel well edge to axle center and the bump stops are either touching or almost so.
When you crank up the t-bars they have a larger gap and cause some front end dive when braking. Some live with that and some don't.
This was on a new unit on the lot.

I at one time back in 06 made a longer one from two OEM springs.

Since then some aftermarket springs from black material in one piece have been made to replace the stock ones that are 1/2 inch longer.
This is the first shot I made where the new one shows up and the Bilstein is 1/2 longer travel than an OEM shock at full droop.
You can see now the upper a-arm is almost resting on the metal upper bump stop, using all the available travel.

The hole would be exposed with an OEM.

 

Ah, ok. So the bump stop isn't a bump STOP, it gives like a spring, aiding the actual shock?

 

Yea
I have a Warn Powerplant, and Steelcraft brushguard winch mount hanging on the front of my H3. So in my case the stiffer longer (I hear that is better for some things) spring works well. It greatly reduces the diving and some body roll in corners.
The longer shock solves the topping out of the OEM if you have raised the torsions to about 23 1/2.
Or you could drop a half inch nut on the very top of the shock next to the housing and get the same change if your shocks are still good. The nut for a half inch bolt will not thread on but is also 1/2 inch tall.

after that I also added longer anti-sway bar links. I ran limit straps on my 06 but don't on my 08 Alpha. I think the stiffer torsions are helping keep the front end up and I have added some custom tie rods into the mix on mine.
Just my experience with some of this. 80,000 combined miles on the two H3's.