Kurt, what would be the negative effects and loss of stability with the lowering blocks ?
It's about the leverage increase when the axle housing is farther away from the mounting point on the leaf. Increased leverage makes it easier for the spring to wrap up under power or braking. There is also side to side leverage increase during cornering.
Leaving the higher arc in the spring combined with lowering blocks even adds more leverage as opposed to having less arc in the spring (especially side to side).
I suspect with the R models and Trans Am cars that the blocks served to help correct understeer as well as lowering the roll center, both of which would be an advantage on the race track. If the leafs were stock they also wouldn't have had too much arc.
The OP says he has new leafs and the car sits too high - means to me more than ideal arch. Dearching will lower the car and roll center without adding unwanted side to side leverage and movement, as well as decreasing tendency to tramp under power.
I am sure there are situations where lowering block may be a choice (easier, more economical etc). But anything over an inch or so IMO too much of a compromise.
Kurt.