After playing around with different brakes (newer 1 ton brake backing plates fit on the axle, but the newer dually drum was too wide and I would have had to move the brake backing flange on the axle in, which seemed like a pretty big effort and potentially risky)
So I ended up getting wheel spacers. I only needed a little more than an inch to clear the drum, and it was by far the most simple solution. I found very good quality steel spacers on
https://www.wheeladapter.com/ The spacers are very beefy and probably about as heavy as the hub itself!
They use 9/16th studs and expect to be attached to the hub with 9/16th studs and lug nuts, so I went ahead and upgraded my hubs to 9/16 studs as well so the lug nuts that hold on the spacers would seat properly.
I drilled out my hub, drum, and clamp plate holes in my drill press with a 39/64ths drill bit (which is about .600") and used PTC 97145 9/16 wheel studs from Rock Auto, which have a .627" knurl diameter. The original stud knurls where about .025" larger than the hole.
I used a lug stud installer tool to install the new studs and they went in perfectly. I know some people say those things are a waste of money and a stack of washers will do the job, but I didn't want to mess around since I had created new holes to go up a size. I found it very helpful.
Anyway - I've been happily cruising around on my nice newly balanced wheels and tires. I had it blasting down the highway at 55-60mph with about 2500lbs of hay bales last weekend.
Thanks for all the advice an input. I hope this post helps someone else who runs into a similar dilemma!
Greg