***DELETIA***
It's usually easier with the arm off the car but you can do it in place, it's just harder to make sure all the energy goes into moving the shaft. If it's still resisting then I'd get some heat on the housing, the bearings are toast anyway so it doesn't matter what happens to them.
Brian
If you're this far in, as my mate Brian (with an I) says: the bearings are toast anyway, so consider them consumable items which you ARE going to replace, along with the spacers, outer nut, and locking washer. The saved parts are the housing, axle, hub and shield next to the universal/inner bearing. All of them are available (at a price) if it really goes toes up, but, the bearings are destined for the bin, so adding some heat to the mix is not the worst you can do (in moderation...).
If you are going to drop the arm(s), I'd just cut the flex brake hose. Probably long past their 'sell by' date anyway. Replacements are available from the usual places. I did stainless a couple times...the original style work just fine for street use.
Probably if you do drop the arm(s) to do this job (as much of a PITA as it may be...), you may also want to consider the metalastic mounts for the front end of the arm in the frame, as well as the bushings for the lower links. Lotus-supplies (no interests, etc) has nice polyurethane bushings that replace the rotted (I'm pretty sure yours are in the same condition as mine...and while they're off or disconnected...you know...do it once etc.
Sounds like shipwright's disease, I know. But refresh/renovate everything you can while you're there and you won't have to go back when access may be a bit more difficult once it's all together.
Just my $.02.