You want the arms of the sway bar to be as horizontal as possible. So if you're lifting 1", then increase the link length appropriately.
Your sway bar is a torsional spring between the left and right sides. The arms of the sway bar allow the roll of the body to engage the torsional spring, and the links are what connect the sway bar arms to the frame/body.
If the sway bar arms are angled, the effective length of the sway bar arm (horizontal distance from end of arm to the bar itself) is reduced. This makes it so the body has less leverage to twist the sway bar, and will potentially result in harsher ride. Can also make it harder for the rear end to flex