I am about as far as anyone can get from being a chassis designer and all prior posters here are more knowledgeable than me.
That said, I would vote (if we were voting) for fixing it as per BT's suggestion rather than removing it all together. I understand Tom Hall sells a kit weld in kit to do just that.
I agree with Michael's description of its purpose. Without the rod, all the forces of the body wanting to sling sideways away from the wheels and axle in a turn are being counteracted solely by the leaf spring mounting points. It has to be because that is the only other point where the body and axle are connected. The front mounts are a know design weakness and are prone to ripping even with the panhard rod in place. Even if mount reinforcement is done, why subject them to forces that are not present when the rod is taking them up by keeping the body centered over the axle?
Because there is the direct connection of the rod between the axle and body, it probably does contribute somewhat to controlling axle wrap, at least in one direction, but that is not its primary purpose as I see it. And a torque arm is not going to do anything for you wrt countering side to side forces.
Maybe Dale's HD springs do a good job of not deforming sideways like the more leaf stock version will ( a separate issue in itself). Fact is, that does not mitigate in any way the extra loading that is being now borne by the spring mounts without the rod in place. Maybe when reinforced they can handle it. But without the rod (or some other separate centering mechanism) you are needlessly reducing the margin for error, whatever it may be. And for no apparent benefit I can see. Again, if installed properly as BT described.
FWIW, my reading of the situation anyway.
Gene