My only comments about switching to needle bearings:
All of the accel/decel and aft braking foces pass through this important bearing in this frame setup, so make sure it is robust. When selecting tolerances, multiply all fitments by 18 to see how far this will let the rear axle wiggle back and forth (e.g., .005" tolerance x 18" length = .09", or about 3/32" of slop). This makes for discomfort in cornering, while you chase the wiggle around.
1. Start with a slight (0.0005") interference fit, as the arm's bearing tube is not round anymore after about 25,000 miles. Or, bore yours round again, then select the bearings accordingly. Otherwise, the needle cage will have to distort oval as it goes in, and you will likely find it tough to insert the shaft collar afterward (maybe insert the collar first?). The distorted system may wear itself together, but it will never be 100% contact: so make sure the bearings can take the load. (e.g., it should carry at least a 5000 lb load so a 50% contact will leave you with 2500 lb capability to cover shock loads.)
2. Make sure the setup has a way to get lube into it: some needle setups do not.
3. Make sure there are seals on it that work: some do not. Small dirt eats needle bearings like Pac-Man.
4. Finally, make sure the new setup lets the collar clamp TIGHTLY to the frame's insides, or it will be very loose, indeed!
Overall, the brass bushings are the better design selection for this frame.