1. The best way to get there is with a purposely designed system like the Torklift Superhitch and Supertruss extension. You are really not asking for what's best, though. You want a cheap alternative, and as you've seen, there is no such thing. At minimum you will probably need to upgrade to a 2.5" receiver in order to take advantage of the generic 24-34" extension Reese makes. I still have not found that alleged 2" 24-34" extension and nobody has provided a link, so I can only conclude that it was discontinued and NLA...
2. Take the jack off. Install a folding jack farther back on the middle strut.
3. I would be most concerned about the camper jacks hitting the trailer during a sharp backing maneuver. My setup was initially much closer to the trailer using an extended shank only, and you could not make the jacks hit going forward. HOWEVER, you could backing up, and I punched a hole in my trailer in a rain storm trying to back into a friend's driveway. I realized it could hit and I was careful up to that point, but not careful enough apparently.
4. While modifying the trailer tongue is attractive in theory, you have to find someone willing to do it and will stand behind their work. This is not a job for your neighbor Bubba and his $89 Harbor Freight wire welder. You will also need to modify EVERY trailer you tow vs. just having the one extension and being able to tow anything.