I did some work on my trac bar over the holidays too, and it is very much like yours. Unfortunately, I found that mine, and I'm sure yours too, limits the up/down travel of the rear suspension pretty significantly.
Jack up the rear from the center of the frame and see how high you have to go to get the wheels off the ground. Do it again with the shackle unhooked.
Unhook the shackle, jack up the rear from the center on the frame and try to hook the shackle back up. It won't work.
If you want the trac bar to limit the up/down travel, and it and the x-member and shackle are all strong enough, you're good to go. I'm changing mine. I'm going to add a slip-joint to the top bar. Flying by the seat of my pants, but it won't have the problem it has now.