Thanks again @ Savagenoth. I bought a pattern off the AH. Was able to gain the buff and apply it, then fished for an hr. My results are below.
TLDR : This may not work on ocean fish. Minimal rewards.
Actual Rack Interaction
I created and placed my own fishing rack next to a campfire i also created. Upon placing the rack, I gained the uncommon fishing buff, and was able to loot the rack to get two fishing lures (+50). Sitting by the fire gave me the kings buff, similar to the fish bowl. So it does look like you need to place the rack to gain the fishing benefits.
I was also 220 fishing when I placed the rack.
Fishing
I went to dustwallow marsh. I followed the road briefly out of Theramore to the first inland water pond (not the ocean or bay * important *). The pond was a mix of about 65%/35% mithril trout to catfish. I spent the first 20 minutes here.
First 20 minutes - pond fishing
The first 10 minutes i did not catch a single bloated fish. My fishing did level up to 225 in this process. I don’t think not being max fishing stopped me from catching a bloated fish, as the overall rate of catching a bloated fish was very low, but worth calling out.
I did eventually catch 3 bloated mithril trout fish here, around the 13-18 minute mark. These 3 fish dropped a shadow gem, a moss agate, and a lesser moonstone, respectively. No gear dropped.
2nd 20 minutes - Bay Fishing
After 20 minutes i moved to the inner bay of dustwallow. I spent 20 minutes catching fish here, and caught ZERO bloated fish of any kind, though i caught numerous other normal fish (oily blackmouth, yellow duckbill, firesnapper, rockscale cod). After 20 minutes of nothing, i moved back to my original inland pond, where i immediately caught another bloated mithril trout ( with a moss agate), and stayed there another 10 minutes. I only caught one bloated trout in this time.
Last 10 - Limited Pool and Ocean Testing
With 10 minute remaining, i went to the northern coast line to try and find a fishing pool. I did find one oil pool with zero bloated results. Elite sharks and murloc limited my ability to truly test further here, though i caught zero bloated with the time i had.
Results
Over all - 4 bloated mithril trout with some small gems. 50 normal mithril trout. 15 rockscale cod, 20 firesnappers, 20 oily blacks, and 10 yellows.
I am going to try river and pond fishing later in another zone, and see if there is an impact. My initial testing showed ocean fishing may not be worth doing. however, the bloated fish themselves had minimal rewards.