i agree with the above. that object does not belong on a midget, but it does look like a bracket one would use to adjust tension on a cable. The cable would run through the slots on the "v" part and you would make it tighter by screwing the center post in or out (see how it has a trough on it that is the opposite of the other two arms?) kinda neat.
as far as taking out the rear suspension and axle, yes you can do it that way. In fact the rear suspension is the only thing holding the axle in now, except for the brake hose and brake cable. you would want to dsiconnect the cable from the axle (there is a bracket hanging off the bottom of the diff case, it is help on by a pin and cotter and the tension adjuctment nuts that hold it to the bracket. Then disconnect the rubber brake hose at the body end. (you will get fluid on yourself).
put a trolley jack or transmission jack under the diff to hold the weigth and lift it so the weight is not on the springs. Then undo the front spring brackets. there are 4 bolts (2 on each side) that go up from under the car, and 4 (2 each side) that go down from inside the passenger space behind the seats. carefully undo the rar spring brackets from the boot floor, you may need an assistant as the bolt heads are under the car and the nuts on top (inside the boot) are not fixed so they will need to be held to stop them spinning. If you have long arms as I do, you can do both yourself) then lower the jack carefully and use it to roll the whole axle out the back of the car.
