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Moreover, what does removing the sway bar do?
Removing the swaybar allows the (in the case of an IFS) each front end coil over to work more independantly than the other. This results in better performance offroad, as the swaybar is not holding the opposing side from drooping when it wants to, hence allowing more contact with the ground more often.
Considering this, is a sway bar necessary?
Actually if you want to get technical if your car's chassis is designed correctly, you won't need a sway bar. The roll center will be much more close to the center of gravity and you won't get nearly the body roll as normal. Tim, if you set it up without sway bars and it drives well for you, more power to you.
sway bar does not affect alignment.