Would probably cause instability and loss of traction (at apex) right before a defensive swerve.

By apex I presume you're saying that as the suspension finishes lifting the car, the act of effectively "throwing" the car up into the air will momentarily lower the apparent sprung weight. Makes sense.

If the suspension can act very suddenly, it could execute only when collision is unavoidably imminent.

Does anyone know what the size of this hitch was? What I'm picturing isn't all that large.

mercedes has something sorta similar... it adjust the suspension to adjust for pot holes.