Wow the accident that busted that towbar must have hurt somebody!
I will have to disagree on the round vs square strength argument. In simple tension, they are the same strength (given the same cross sectional area). Round tube is much stronger for twisting forces (like driveshafts) and square tube is stronger for bending/cantilever as long as the forces are parallel to the the Y axis (this puts the top of the cross section in axial tension, the bottom in axial compression and the sides in Y axis compression. A round tube under the same load will flatten out and bend under the yield load of the square tube.
I would certainly consider going with a purpose built lunette as this will see some serious abuse. You might also consider using 2.5"x 0.25 seamless square tube (A36 would work, A400 or 4130 would be better) so you could slide some 2" square tube inside for added strength. When towing light stuff like CUCVs, the 2" square tube inserts could be removed to make the bar lighter and easier to work with. When pulling big stuff, put the inserts back in.
Anyway, I hope you do start building them, or at least putting together plans.