I run 1.75"x.120". I did use 1.5"x.120" and also had no troubles. I changed material sizes for reasons of convenience not strength when I had to re-do my track bar design.
The trac bar should only be seeing tension-compression forces. If it's straight, with no bends, even a small diameter like 1.25" should be fine. If it has a bend, things change some.
The tensile strength on typical HREW is 55,000psi. Using the cross sections for 1.25" and 1.50" (x.120"), you get tensile strengths of 23,400 lbs and 28,600 lbs respectively. Both those numbers exceed the rating of typical 3/4" heims, the single (and almost the double) shear on a Grade 8 3/4" bolt, all TREs and certainly the double shear on the Gr 8 3/8" bolt that RE uses on their HD trac bar drop bracket.
I think that's probably strong enough.
Edit:
As I said though, if it has bends, the calculation complicates considerably. In which case I would just take the recommendation of what these guys are running.