Sorry, but that is a misinformed opinion. The wheelbase of the Liberty is just fine, provided that the trailer (any trailer) is PROPERLY LOADED. The "squat" of the Liberty that you mention is proof that it is NOT properly loaded. Using the argument that you need a longer wheelbase to tow is simply continuing the misconception and a basic misunderstanding of the physics involved. A longer wheelbase does not correct for improper tongue weight, it masks it.
For your CRD that you say has too soft of a suspension, what tires do you have? Have you tried some ACTUAL light-truck tires on it instead of the woefully-underrated stock Goodyear PASSENGER CAR tires they sell it with? You will probably be pleasantly shocked about how much better it handles while towing.
Think of the ball as the fulcrum of a big lever or see-saw. If a see-saw has equal length on both sides, it will balance perfectly horizontal. That is what you want. If one side has a 50 lb weight at the end, you need either a 50 lb on the other end, or 100 lb half way back to center... And it will again balance. If you have a 50 lb weight at the end again, but only have a weight just past the center point... That second weight might need to be 500 lbs to balance. See how putting the fulcrum further and further away from the weight means you need LESS weight?
Another way to think of it: If you have your weight (the truck engine) 25 feet away from the ball, (in all times, the rear wheels are your pivot point) then to lift the front wheels and destabilize the steering will take LOTS of weight because that lever is very long. The opposite side of that lever (from the rear wheels to the ball) is very short. Yes, trucks like an F350 can take stupid amounts of tongue weight and be "safe" for people that don't know how to load a trailer properly because all the weight is on the "short" side of the lever.
For a "short lever" like the Liberty, the answer is simple - REDUCE THE TONGUE WEIGHT. You are trying to PULL something, not LIFT it. The distance from the rear axle to the ball is roughly the same as on a truck, but yes, the longer side of the lever is much shorter than the truck. So if you put a stupid amount of tongue weight onto the Liberty, the frame will show you that it is improperly loaded by NOT being parallel to the ground while parked, and when you are driving and attempting to stop, the direction of force will push through the ball and BELOW the frame (pushing the ball down) and lifting the front wheels even more. This is what makes a tow "unsafe" and it all comes back to IMPROPER LOADING and too much tongue weight.
At all times, you want the forces to be parallel to the ground. When you pull, the force is straight through the ball from tractor to trailer. When you stop, the force SHOULD be the same, but as a "push" from trailer to tractor because of inertia. If the frames of both vehicles are not straight and parallel, you have a "vertical jackknife" attempting to happen.
By the way, talking about the length of the trailer in relation to the towing vehicle - Semi-trucks have been mentioned already, but they kinda don't apply b/c the weight and pivot is sitting directly on the rear axle. But have you ever seen a Mobile Home company making a delivery? That is a 60 foot long building being towed with a TRAILER BALL by a truck that has EXACTLY THE SAME WHEELBASE as our CRD. Why doesn't the tongue weight lift the front of those trucks? Believe it or not, but the tongue on something that big is actually only about 1500 lbs, and the trucks usually have a LOT of cement blocks on them. They tow safely all the time because they can correctly manage the tongue weight to keep the frames parallel.
Oh, and here's an example of a safe towing setup that I have done MANY times perfectly safe. Notice the rear wheels NOT sagging like with that boat b/c I have the right tires for the job. Stock suspension on my CRD.
