I am pretty sure that they didn't think. Body overhang was common on many cars. Tires sucked and tucked in were the way that they looked. The 8% of the buyers that cared enough to mount wide tires just did as you did, install air shocks or longer shackles to lift the rear. As time went on and with the "Pro-Touring" theme gaining in popularity, the style of a jacked up rear end sort of faded. I like running tires that fill the wheelwell because it looks like a NASCAR type of setup.
Nascar:
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My car:
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I have the dreaded wheel tub problem in this car and plan to address it.
I did a practice run on my other car.
Same model, 1970 Charger. I simply made cuts that sort of resemble football stitching:
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Tire clearance greatly improved for almost NO cost aside from welding supplies.
Do you have a welder?