I have a very similar problem with my setup- same Equal-i-zer hitch, same stupid V-shaped chain attach point under the coupler. My chain hasn't been crushed as bad as yours, though.
For the record, the current chains have plenty of length, and I wouldn't say I've 'jack-knifed' my trailer any more than normal.
I'm relocating my chains to the inside of the A-frame (new chains and hooks while I'm at it). I'm using bolt-on 12,000-lb D-rings as attachment points. There are also weld-on varieties if you're so inclined. After the new chains are on, the old attachment point will get cut off.
Have you also had the issue where a link will get hung under the hitch head when unhitching and pick up the back of the truck? Wore my arm out cranking the tongue jack a few times before I figured that one out!
