Well, it sounds to me like a sway bar needs to be held in such a way :
1) that it can rotate up and down, so that it doesn't further stiffen the suspension (it can twist).
2) that it can twist or load from one end and transfer weight to the other end without bind.
3) that the center portion is restrained from moving up/down, forward/back, or sideways.
Maybe it is like a hub and axel.....the axel is allowed to rotate, but it is held in position by the bearings/hub!!! I think I may understand!!!!