I too was bothered by how low the Lakewood flange hung, but in my opinion, the fasteners holding the scattershield are there for a purpose. Removing material below the bottom fasteners is a good idea (about 1/2"). Nothing has touched the lowest area of my shield after over five years of driving, but then I do tend to avoid rough roads. A modern clutch and flywheel is also a good idea. But I don't want to be the first guy on my block to have anything blow out through the bottom of my shield (and then back up). But if I were to take it apart again, I'd seriously consider one of them newfangled units with even more ground clearance.
Rich