When I bot a "new" '05 27' Trail Cruiser had to reset the equal-I-zer hitch on my '94 GMC Suburban k-1500. Thought the tongue height was about the same as the '04 Tahoe we got rid of. Set it up the same but turns out the Trail C was lower than the Tahoe so it sat a little high like yours does. So I lowered the height of the adjustable hitch to the lowest hole, added some washers and solved the handling problem. Now there is a slight squat at the rear of the Burb but the TT is quite level. So, I think you may be starting your hitch adjustment with the ball a little high.
