It looks like joints are the solution here - you need to create a chain that will simulate your physics and also make visuals accordingly.
- Make a chain using fixed joints connections:
2a. Either add small “slices of bacon” to each collision object in your chain (each collision object should be then inside a separate game object):
(of course sprites must overlap each other and you must somehow limit rotation of each one)
2b. If you are brave enough - make one sprite for your bacon, but use it as a texture to a quad with many polygons and then modify its vertices in a vertex shader according to a list of position of the center points of each segment (each segments connected to each other via above fixed joints) - if this sounds like black magic to you - you need to step into shaders. The below one is my explanation, pretty good for a start, but does not touch vertex programs sadly:
If you will get to understand it, there is a forum post, where Sergey helped me “wave” the grass by modifying vertices of a quad (same solution that you need for your bacon). It took me a while to get it:

