Yes indeed. Now, as explained by Dewan and Beran (see the elaboration in Wikipedia) we have the situation that the distance between the spaceships as measured in in the launch pad frame is the same as it was before they took off, since they took of simultaneously and with the same acceleration. Consequently, in perfect agreement with what you say, the distance as measured in the moving frame must be greater (increased).
As Nugatory pointed out, according to observations in a co-moving frame this is so because the first spaceship took off earlier. Note that also from that point of view length contraction plays a role; however in this case the spaceships are seen as slowing down, so that now the string would hang loose (due to length de-contraction) if according to that frame the ships had taken of simultaneously.
I hope that it's now clear that that does not follow. It even wouldn't make any sense, if you consider the following:
A...B...C...D
A and D are reference towers of the launch pad frame. B and C are the space ships. Imagine that the spaceships take off horizontally and quickly reach very high speed, before closely passing (or hitting) D. According to you we then have:
A...B...C.D
Which means that, following your reasoning, the space ships would shrink the distance between the towers, pulling them together!
There is no law of physics corresponding to such an idea; it would be magic.
Yes, that's correct. As described from the launch pad frame: If the occupant of the space ships would put a ruler between them, they would measure a greater distance because their ruler has shortened. More practical, instead of a mechanical ruler they could use a laser with mirror and a fast time laps detector to detect the reflected laser pulse: due to their speed they will measure that the return time of the laser pulse is increased which they may interpret as an increased distance.