You're talking like the hitch sticks out 2 feet. Even if it sticks out 6 inches or so it's not gonna make it or break it, so to speak. You're saying that in city traffic they cut in not thinking about their ball hitch, well, if it's enough to make a difference, it means that you are too close on their ass, or they are being dumb asses and cutting in too close.

If you say that you can't judge distance to the vehicle when you're pulling up behind them, that means that you're pulling up too close to them and too fast in order to judge the distance cerrectly.

I honestly don't see a problem because with decent vision you can always see it on the back of someone and just back off a little. You know it's there so give yourself some more room. 6 more inches are not gonna killa ya.

I do agree on your point of people backing into spots with them on. I live in the city and there's nothing but parallel parking around here. I've gotten backed into numerous times when I used to drive a Sentra and later a Maxima.