Thanks for the input.
A setback rack might work... if the rack legs are thin enough. It looks like they might be in the case of the Streamliner Disc DLX. It is also possible that remounting the rack on good old-fashioned P-clamps on the seat stays would move the rack far enough from the QR axle to make it work (but I don't really want to sacrifice load capacity... I do go shopping with this thing). Otherwise, it's out with the Dremel for me!
By the way, the hitch looks like this:
But I think that is upside-down or rotated 90 degrees from where it should be.
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--Ben
2006 Trek SU100, 2009 Motobecane Fantom CX, 2011 Motobecane Fantom Cross Uno, and a Bakfiets
Previously: 2000 Trek 4500 (2000-2003), 2003 Novara Randonee (2003-2006), 2003 Giant Rainier (2003-2008), 2005 Xootr Swift (2005-2007), 2007 Nashbar 1x9 (2007-2011), 2011 Windsor Shetland (2011-2014), 2008 Citizen Folder (2015)
Non-Bike hardware: MX Linux / BunsenLabs Linux / Raspbian / Mac OS 10.6 / Android 7