I know transfer case drops help with rear angles... but dont they increase the front?

I know transfer case drops help with rear angles... but dont they increase the front?

it seems like they kinda tip the case a bit

Correct.

what if you dropped the engine 1" too? anyone done that?

People typically lift the engine an inch. The reason you can get away with the drop is because the front driveshaft has a double cardon joint like the rear should when these trucks are lifted. The tcase drop also allows you to put the rear axle nose up a hair while still keeping the angles on the same plane. Google driveshaft angle and look at the images.