There should be no reason to order 32-31-1-120-260 (this is just a spacer ring), as your existing part can be reused.
If you can find a bearing (very limited supply when I checked) 32 31 1 157 400, it would be worth it. I refreshed everything when I installed my E46 rack, including the u-joint 32 31 1 156 348. I think replacing the u-joint made a tremendous difference and is frequently overlooked because it's about $90.
For airbag cars, yes you will need to grind down the firewall and the locating plate as described in the article.
Yes, you will need the spacers to mount the rack to the subframe. I used the spacer kit you linked to on the E30tech page.