I’ve currently got both the Delta VS bracket, and a Tough Dog adjustable panhard bar ,on our old 99 LX. Having them both is somewhat redundant, but I already had the bar sitting on a shelf in the garage, and I was exorcising bad bushings in the rear suspension of our 22 year old, 250K mi LX. The fancy adjustable bar is currently set to match the factory length of ~43"
Basic high school geometry would seem to indicate:
(length of factory bar) - sqrt((length of factory bar)^2 - (amount of lift)^2) = (lateral axle shift at rest)
Based on these assumptions, it would seem that the axle shift from a 3.5" lift (at rest) would be < 0.143"
(But, it will also shift back and forth as the suspension cycles.)
To me, if you've already decided to do one or the other, on paper at least, the Delta VS relocation bracket seems like the better choice, but since the minimum bracket adjustment is ~3", you'd need to be close (or exceed) that amount of lift, otherwise you'd just be "over correcting" the geometry.
I don't think the bracket is absolutely necessary, but it's hard for me to tell what was "fixed" by replacing the bushings in the rear suspension, and what was "fixed" by the relocation bracket. Our old LX does drive much better after our changes though.
(Edited to correct panhard length, to a roughly measured ~43")