I have one of those old Warn receiver shackle mounts, and I don't use it much. It's pretty heavy, and I find that my 2" strap pinned into the receiver works great. Even with some fairly off angle pulls, I've never had it damage the strap. Taking a file to the edges of the inside edges of the receiver might not be a bad idea, but I haven't done that either.
In my college days, we wheeled more seriously, with less regard for the vehicle. I used a standard ball insert like pictured three posts up, but mounted upside down for clearance. I then used good a 5/8" shackle through the ball hole. Worked great, and I had more faith in hitting it HARD vs. using the shackle pin through the strap. (I don't wheel like that anymore, so the pin is fine for me now.)
For those of you concerned with ultimate strength, the Warn shackle mount is NOT stronger than using the same shackle through a ball mount.
For enginerds like me, here are some numbers:
The shear strength of that "little" 5/8" pin through a 2" receiver (double shear, technically) is abut 46,000lbs, assuming the pin is equivalent to a grade 5 bolt, which most are.
The tear-out force to pull a 5/8" shackle (3/4" dia pin) out through the ball mount of a standard ball insert is about 55,000lbs, assuming a low grade insert, where the ball mount is A36 (36ksi) steel.
A GOOD forged 5/8" screw pin shackle is rated at 3-1/4 tons (6500lbs), with a safety factor of at least 5 (Rated for lifting). That means that the 5/8" shackle is actually capable of at least 32,500lbs before yielding. (Note that the shackle is the weak point!)
The Warn shackle insert actually has about the same cross sectional area as the hitch insert where the shackle mounts. If warn used very high strength cast steel for the insert, then it could exceed the ball mount in strength, but judging by the way mine rusted in big flakes, I'd say it's probably fairly low grade cast steel at best, and therefore comparable in strength to the low grade ball insert.
A higher rated ball insert (10,000 lbs instead of 5,000) would be FAR superior to the warn shackle mount, and cost far less, BUT the shackle is still the weak point.
Finally, the straps you're likely to use in normal recovery (2"-20,000lb or 3"-30,000lb straps generally) are the actual weak point, which is EXACTLY how it should be. Pulling from your class III or better hitch is FINE. Using a ball insert and a 5/8" forged screw-pin shackle is also FINE.
The point of using a recovery strap is that it is somewhat elastic, meaning it stretches. This GREATLY reduces the dynamic forces involved. At the opposite end of the spectrum, using a chain, with no elastic properties whatsoever, sends HUGE spike loads through the system. a 5mph running start with a chain will snap off even the strongest hitch, hook, or whatever. A 5mph running start with a recovery strap will likely not exceed the weight of either vehicle in pull force.
Hope you find this info useful!!
Chris