For something a little different...

Reverse Inch-itus. While most find themselves regularly looking to go bigger and bigger with their setups, I'm finding myself looking to do the opposite. I'm sitting at 4.5" right now with a hodge podge lift. Rusty's springs and crappy shocks, TnT track bar, jks disco's, and RE drop brackets. I'm on 32" KM1's. I've been running this setup for probably 4 years or so, and have never been happy with it. And as the years have gone on, I find myself using my XJ in much different ways than I did at 19. I'd like to lower my jeep to approx half of what it is... ditch the 32" muds on steelies, and go with about 2-2.5" of lift on stock ecco's with maybe 30's or 31" a/t's. So here's the question, what is the best way to go about it? Most of my research over the years has been geared toward bigger setups. Should I just do a spacer or ACOS on stock springs with a shackle? 2"ome? What about a track bar? Will stock work or should I go with something like a JKS setup? I've got an sye, so driveline vibe's shouldn't be a problem. My overall goal is a plush highway ride, good towing capability, and decent flex for a little off highway stuff. I'm open to anything so lay it on me...

My goal for my lift was good highway ride plus good off road performace. What I have ended up with is a 2001 4.5 lift 4.56 gear sye 32"tires. The lift I went with was Claytons long arm kit I got evey thing from them to do the lift. All parts are really well made and lift went in over, one long day and great service. The ride on and off road is what I was looking for and I live with it every day, I could not be more pleased. And in the backcountry I can follow trucks on 35 all day long.

For what you plan on doing I would:

Run stock front with a coil spacer and run JKS disco's, replace the rear leafs with a full pack.

Reasoning:

Stock suspension will give you the best all around ride. It wont flex like a built kit but if you disconnect the sway bar you'd be surprised how much it'll flex. The trac bar is iffy, it depends on how your Jeep deals with the suspension set-up.

Since you said that you plan on towing you will want a full pack. Add-a-leafs will flex too much under the tongue weight and anything you have in the cargo area.

But, if you have the money and don't mind buying a kit get an OME kit for whichever height it is that you want.

I'd say ZJ upcountry coils + ACOS possibly, or just added coil spring isolators.
For rear, either bastard pack or OME 2" leafs. Lowest price shocks will probably be JK take-offs.

Doing some searching around, it may be the easiest option to get the 2-2.5" OME kit from DPG Off-Road. Trying to piece together a kit might end up costing almost as much, and frankly I'm kind of tired of spending money on this thing lol. A concern though is that I've read that the OME springs mimic the way the factory springs sit, causing the rear to sit higher than the front, and I HATE the way that looks. Any truth to that?

I went with a similar setup on my 99. I added JKS ACOS spacers up front (because I
knew a heavy bumper and winch would be added) adj control arms and shackle.
Jeep sits at ~3.5" lift now. Ride is excellent for a short arm setup and flex is decent.

I did have to spring for a longer track bar...

Goatman and I built that setup to chase the baja 1000 in 2009 (not go fast, just a little taller with a little more weight capacity).

We did V8 ZJ coils with 2 isolaters on each side. Added 1 long and 1 short stock leaf to a stock pack, with an MJ shackle. OEM bilstien yellow shocks on all 4 corners.

We sat about 2" taller up front and 2.5" taller in the rear, it was very firm but not rough. Drove really nice on the highway, and when we loaded it down with gear, didnt sit on the bumpstops.

He sold the XJ like that, and as far as I know the new owner still drives it that way.

If you are doing this on the low budget. the stock TB/upper bracket with a lower relocation bracket (ala SkyJacker) worked for me for a long time.

I'm more concerned with having the final outcome be a solid, smooth riding rig, free of d/w, than I am price. Not that I'm not concerned with $, but the OME kit keeps looking like the best option.