OP said:
What am I missing or am I being too conservative?
1) While I understand your concern, I don't believe that this is something that other engineers are checking routinely. I wouldn't be inclined to worry about this.
2) Given that it'll be tension only bracing, as retired13 pointed out, somewhere in the system there should be some opposing rod bracing that goes into tension when the rod(s) that you're considering go into compression. So long as normal drift limits are maintained for those tension rod braced bays, the imposed displacement should be small enough that the compression rods can easily buckle out of the way without going plastic.
3) Interestingly, if you run the numbers, a tiny amount of imposed axial displacement can produce a shocking amount of associated lateral displacement. So, in that respect, I can see how this has piqued your interest. Check out
this thread for something interesting and related that we dealt with a while back. In particular, check out the sketch included in the originating post.
4) I might share your concern if you had an oddball system with a tension only brace in one direction but, say, a flexible moment frame in the other. Then you might see some more significant axial displacement imposed on the compression rods. That said, in decades of structural engineering I've never come across such a thing and I feel that, in many respects, it would be a poor system choice to begin with. If such things exist at all, perhaps they come about as retrofits etc.
5) Any pretension in the tension rods would ease this a bit as the compression rods wouldn't actually see compression until later in the frame load history. I've specified this for cables in the past but not for rods. Other than a general turn-of-the-nut specification, I imagine that it's pretty tough to exert any meaningful control over the pretension in a rod brace.
6) Even if you plastify the rod in bending/buckling, I'm not sure that's actually a problem other than aesthetically. For a stocky section made of ductile stuff, you should ultimately be able "pull through" any locked in flexural stresses and still achieve the full tensile yield value as planned. In a way, the locked in buckling stresses might actually serve to stiffen the braced bay when the load reverses and puts the brace back into tension. Although I suppose that this would in imply permanent set in your fame drift when what you'd surely prefer is a full elastic return to the neutral position.