Thanks for the good suggestions.
Yes, I have made sure to remove the small bolt with the rubber tip before trying to get the axle out of the engine mount but thanks for the reminder.
I have also tried combinations of penetrating oils (WD-40, Kroil, Release-All etc...) as well as using an air chisel to vibrate the engine mount all with no success. You are absolutely right about there being limited room and it is awkward to remove and separate the rear engine mount.
I wanted to add some heat to the equation but was a little leary of using the torch in that confined space but if someone has had success I would be happy to try.
I am thinking that the good folks at a Toyota dealership who do these regularly have a few tips that would make the job easier. Does anyone know a Toyota mechanic who would be willing to share ?