I've had two rears fail on me over the years, and both went just like yours. You might get a little bit of leakage for a while maybe, then in less than 30 miles it goes from a little noise to a clunking growling mess. I keep meaning to get one rebuilt but with so many spares I guess I figure I'll try not to have it go out farther than 30 miles from parts.
I keep thinking what are you doing in the front? Torsion crank is only good for 3 or 4 inches and going SOA in the rear is an easy 4 inches just on its own. If you aren't going solid axle front, then at least just bolt up the rear with nothing more than maybe a leaf and the SOA convert just to see how things even out.
If you pinch the spring in some it will really hamper up and down travel in the rear. That could put one wheel in the air a lot too often, especially with no locking diff or limited slip. I guess you could always make a lincoln locker
Oh, GILES5 brings up a very good point and something I hadn't thought about on even shackle lifts. Anything done to one perch (or spring end)and not done to the other is going to affect the angle. Something to think about for sure.