I'm no expert, but I might be the only guy on PFF that has done the control arm drop on an early mustang (my 65 fastback). And yes, it handles better. Although that's not the only change I made to the suspension, it is a tried-and-true mod on those cars.
How that compares to a Mustang II setup, installed on an early mustang, I can't tell you firsthand. I would expect a Mustang II setup to work pretty well, especially the better kits with tubular control arms, good shocks, springs, etc.
Is it possible to put Mustang II parts on a Fiero? I'm sure it is, but I doubt if it's worth the trouble. Keep in mind that the main 2 reasons this is done on an early mustang are to get rack and pinion steering, and to remove the shock towers to make room for a bigger engine.
Can Fiero upper control arms be lowered? Not without a serious overhaul to the front crossmember. Take a wheel off your fiero and look at how that is designed. It's not just holes in sheetmetal like on the early Mustang front end. Plus, I'm not sure it would do any good on a fiero. Might make it worse. The Shelby mod you're talking about was done to correct a geometry "problem" on the Mustang suspension.
If you want adjustable camber on your fiero, just buy some aftermarket upper ball joints. If the ones you get are like mine, the mounting holes are slotted, and you can adjust the camber there.
Based solely on what I think is wrong with Fiero handling, I would say relocate your battery to the front. Or if you want to try it out first, pull your spare and throw about 50 lbs in the front compartment. The only problem I ever really have with Fiero handling is that the front end plows like a freakin' John Deere.