Been doing a bit more research and came across a discussion between two drivers about setting up a car - not an overly-technical discussion but they did both notice that adding overly stiff sway bars did cause that end of the car to lose some traction.
http://insideracingtechnology.com/disccosmo.htm
The stiffer the bar, the less grip in that end of the car. Why? I really don't know why.
What are the benefits and tradeoffs of using an anti-roll bar? Benefits or tradeoffs of using an anti-roll bar as opposed to...what? Not using one or changing something else in the car? I'd say a benefit is less roll! The more level the car stays during weight transfer the better. Why, I'm not really sure. You can stiffen the front bar to control most of the cars roll and reduce wheel spin, but risk losing grip in front. You can stiffen the rear to get a car to rotate but risk gaining wheel spin at the same time.
Now, thought I'd take a quick look at some technical theory regarding ARBs and the wiki article is quite a good place to start.
http://en.wikipedia.org/wiki/Sway_bar
Good read, starting with the obvious that they reduce roll (which isn't a nice sensation when driving fast, and gone unchecked a car could roll off the road), but the article also states the downsides.
Although Anti-roll bars reduce body lean, this comes at the expense of increased load transfer at the end it is applied to. To keep the body level in cornering, the bar pulls up on the inside tire (therefore under loading it) and pushes on the outside wheel (over loading it). Anti-roll bars therefore reduce overall grip at the end they are installed to.
It also goes on to mention an overly stiff bar will increase side-to-side body motions; how different bars can be used to dial in understeer or oversteer; and that they effectively allow a soft suspension setup to remain comfortable while reducing roll.
From reading these and other articles it appears to me that to get the best handling possible would require a proper suspension (springs & shocks) upgrade, which will improve cornering body roll without decreasing grip levels. However, at this moment in time this is not something that I am considering as it is a daily driver that I want to remain quite comfortable and also I am not dissatisfied with grip levels as it stands currently.
My car handles nicely - I think it's quite neutral - more towards understeer than oversteer, but quite fun to drive. It's mainly when on some tightening motorway slip roads that I notice body roll and it would be nice to reduce this slightly. I'm therefore now thinking that an ARB upgrade should not be to an overly-stiff setup, but to increase the front bar slightly to perhaps 22 or 23mm and a rear ARB to match. I think 25 or 28mm might be too much - and in actual fact I'm wondering if it is better to have the rear softer or the same as the front (as you know, stock setup has softer rear).
I don't want to lose too much grip in the trade-off for less body roll. For these reasons I'm thinking of either the Neuspeed 22mm or R32 23mm front, and Whiteline 22mm rear (as Neuspeed don't appear to offer this). Has anyone got a setup with the front and rear ARBs matching or the rear being slightly softer than the front?
Laslty, I know Rudd mentioned only Neuspeed bars fit with the OEM exhaust on the LCR - is this definately the case?
Thanks again - this thread has been very useful so far.