As another 5 star who's been around since the wagon was new,they where all down hill racers when new for all the reasons previously stated.Now keeping in mind the 1K is a pre ADR stamped vehicle this means the vehicle should present in an "un modified state" to pass any RWC.
It's time to call RWC friends bluff because he's wrong,another example is if the car did'nt come out with a heater...it does'nt have to have one now if you follow the letter of the law,but some rwc folk think they know it all and won't do any up date reasearch.
On the lowering blocks,i have done several times what Beattie has suggested with no ill effects on road or track,just make sure everything fits nice and tight including the top pin in the block,i use a piece of steel rod and press it in.