My 78 Waggie had the same knurled ends on the shackle, not the spring bushing pins. Yes... they are made to 'bite' the frame. The rubber bushings is where the flex comes in....as it twists inside the shackle. It would assist the suspension back to normal positioning after a tweak.
I tried poly bushings with smooth pins and the ride was good but the suspension didn't always like to 'come back'. Plus I do alot of river runs and the poly was shot after 1 year.
Now back to rubber and I like it alot better than poly with no 'SQUEAK!!!!!!' and the suspension is aided by the 'memory' of the shackle... 6000lbs of waggie doesn't hinder the flex on the knurled ends at all. MHO....
78 Wagoneer

14" total lift
4.89's/Lockers/39.5" Swampers
http://home.earthlink.net/~tjnkk