Like CharlesS, I recommend against the lift blocks. They'll kill your springs very quickly.
However, the RE 3.5" leaf springs will probably lift you at least twice as far in the rear as the 1.75" spacers in the front. A more balanced lift would be to get a pair of Rancho add-a-leafs for the rear. They should give you 1.75" to 2" of lift, add some weight carrying capacity, and they strengthen the springs rather than contributing to their early demise.
No the AAL won't ride "harsh." It's a full-length leaf. It will be firmer than stock, but IMHO it rides better than stock. Should be about like an XJ with UpCountry.