I'm going to wiegh in on the side of trying to adjust the pedal height first. True you won't get 3"-I don't think you could anyway-this way, but you may get enough without cutting and welding the brake pedal shaft. I don't think the brake light switch should be a problem with this adjustment, either.
Disclaimer
Of course, this is all from my memory of how it looked on mine when I was working in that area about three months ago. My advice is only worth what you paid for it and maybe not that much.
