we need to replace/upgrade our w/d hitch, at least ive been told so by a couple of dealers we tow a 21 ft 2600 lb(dry) so probably closer to 3200, tandem axle travel trailer with a dodge Dakota pu....
Level and/or rear squat means nothing. The purpose of weight distribution is to restore the original weight on the front axle back to the axle for proper handling/steering.
When you put weight on the hitch, the truck should squat just like when you put weight in the bed.
BTW, if the factory dry weight is 2,600# the loaded weight is likely wayyyyy over 3,200#. First step is get the trailer weighed while loaded and ready for camping.