Thanks for the advice, and the commiseration! I knew it was bad, but seeing the photos - yikes.
I've taken more photos of the bolts that attach the rail to the ceiling. I like Old Dog's idea of just moving it closer. Even if it isn't possible with the rail I have now, (do to the parts that overhang the actual rail) it may be possible with another type.
Of course, any rail will still need long bolts since the ceiling is much higher than the door.
My husband still wants to pad it out so isn't interested in any other solutions.
I just want to keep my private business private when we have company! Maybe I'll send him around to the other condos that have had different fixes done.
I'll keep you posted on what we decide, and keep those ideas coming in.