Do I Need Traction Bars?

Some springs have more arch than others. Actually a flat spring gets shorter as they compress. The rod will be pushing back and the spring perch trying to move forward.

Not on a Mustang with positive arched springs. The axle moves toward the rear as the spring compresses. I don't see how you could use flat springs on a Mustang, unless it was a lowrider.
 
It does not sound like there is much give in the polyurethane bushings.

you are right, there is not much give with poly bushings, but then there doesnt need to be at the front part of the spring.

Yes, half of the length change happens at each end of the spring.

actually most of the length change with the leaf set up is in the rear of the spring. remember that the axle is not set in the center of the spring, but actually pushed forward of the spring centerline by a few inches.