Hi AB,
As you noted, the trade off here is with Ron and Vbias, the higher the DC bias the higher Ron goes. Figure 1 in AN-952 shows a typical plot of this relationship. In your case, using 0.8V offset will result in a higher Ron as you noted. The switch will work but it will have slightly higher loss. Since your peak voltage is less than your Vdd supply voltage and you have no negative going voltage cycle I think you should not see signal clipping. But you should try and look at the insertion loss of your signal as this will have increased. I can't say by how much as weonly when up to a 0.5Vbias for our insertion loss datasheet measurements. As long as the Ron doesn't increase significantly then it shouldn't be too much of an increase. With this in mind, I would recommend using a Vdd as close to 2.75V as you can. This keeps the Ron Vbias curve flatter for longer, e.g. at 1.65Vdd I have seen Ron to go high,approximately 25ohms (with 0.8Vbias). A 2.75Vdd would be the best case to give you as low an Ron as possible at 1.2V peak signal.
Regards,
Eric.