If you are pulling hard enough to bend a inch digging bar you are going to want to pound that rebar down farther than 1 foot. I wouldn't want to be standing in the way when a 4x4 studded with rebar comes out of the ground under tension.
Cutting that 8 foot of rebar into 3 pieces and driving them all the way down through a 4x4 might work. You could also dig a small trench the width of the 4x4 perpendicular to the path of the rope, set the 4x4 in the bottom and then drive the rebar through it. That would give you the full width of the 4x4 to pull against plus the 3 pieces of rebar.
Or just keep pounding that digging bar farther down (maybe 4 feet). Could be easier to dig a post hole 1-2 feet at a slight angle and then drive the digging bar down another 2 feet or more.
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