I firmly disagree with removing the rear sway bar on ANY coil sprung 4runner for ANY reason. The reasoning behind that is if you're off camber on a hill, your vehicle will want to shift its weight laterally (side to side), and even with the panhard rod installed correctly, the body does shift slightly downhill on the axle. This moves your center of gravity further over the side of the wheels leading to a raised likelyhood of a roll over. Personally, I'm converting to rear leaf springs with a 3-link setup so I can use a gas tank where the spare is and have the very design of the leaf springs provide additional lateral location. Most people with a pickup or a pre-1990 runner is likely to tell you to ditch the rear sway bar, and I don't disagree with them at all. Not for us coil-havers.
You may need longer sway bar links to reach correctly. You should first try to loosen the bolts keeping the bushing retainers tight on the vehicle and try to see if the links will reach on their own. If not, you should be able to get a handful of hardware and make it work for yourself. Whatever you do, don't run offroad (hell - anywhere) with it off. Consider a panhard rod drop bracket if need be, there is one available from 4crawler: