Okay let`s clear things up a little bit here. First off it`s best to run compliant rubber bushings in the axle housing if you plan to run a watts. Let the watts handle the lateral axle location and RC locating duties and just let the UCAs handle controling pinion angle. Beefy arms are fine just use compliant bushings in the axle housing. It will work with poly in the housing but run the watts in one of it`s 3 highest settings to prevent RC conflict. As far as running the watts with beefy upper arms AND hard bushings or bearings in the axle housing, just don`t do it. It`s dumb.
PS. Lowering the rear RC with the watts actually requires a big
increase in rear spring or swaybar rate. That`s one reason we designed the watts and Spohn adj. rate rear bar to work together. I still prefer to run the watts relatively high, 16" or so. We haven`t seen any measurable gains from lowering it much more and it requires an uncomfortable increase in spring rate and sway bar rate to keep the car neutral. Been there,done that.

Mark SC&C