The only difference between the Warn 5 on 4.5" and 5 on 5.5" kit is the bolt pattern, wheel hub, locking hub and shaft spline count. They use the same spindle and bearings between the two, you also have to mod a CJ rotor ID and OD to standard Jeep dimensions. Meaning if you ever wanted to upgrade a Warn or MM small kit to 5 on 5.5", just buy the CJ hub upgrade kit from Warn or find a CJ to pull parts off of.
When you upgrade to the larger kit with the 30 spline outers something else (more expensive) becomes your weak link. With the small kit the first thing to go would be the locking hub, can you change your wheel? Thats how easy it is to be back on the trail. With the large hub kit, it could be the u-joint, shaft, locking hub, ring and pinion, pinion yoke, etc. All which have a great way of taking mulitple things out along the way.
You really don't gain much just upgrading the outers to 5 on 5.5" without upgrading the inners to 30 spline also. There are aton of guys running the smaller kit on 35"s and 37"s successfully, I do.