Take it off.
First XJ: 2001 Sport, rear swaybar connected. Got bored one night and took it off. Noticed no difference in on-road handling whatsoever, but rear articulation was *vastly* improved off-road.
Second (and current!) XJ: 2000 Limited with the Up-Country package. No swaybar from the factory; also came with the tow package. As good to drive as the 2000. No noticeable difference when towing a 3000lbs. car on a flat trailer.
In short, removing the rear swaybar is probably the best zero-dollar mod you can do to your XJ - at least in my experience. YMMV.
First XJ: 2001 Sport, rear swaybar connected. Got bored one night and took it off. Noticed no difference in on-road handling whatsoever, but rear articulation was *vastly* improved off-road.
Second (and current!) XJ: 2000 Limited with the Up-Country package. No swaybar from the factory; also came with the tow package. As good to drive as the 2000. No noticeable difference when towing a 3000lbs. car on a flat trailer.
In short, removing the rear swaybar is probably the best zero-dollar mod you can do to your XJ - at least in my experience. YMMV.