Origin-8 makes a better version of the bar, which I use on my 29er mtb.




As far as the brakes go...they do make adapters that raise the mounts. Not pretty, but do.
http://www.biketrailershop.com/xtrac...er-p-1600.html

Also could check to see if a caliper brake might work up front, depending on the distance to brake surface.