I can vouch for what others have said about the 242/rear autolocker combination being a good one. I have a '98 Classic that came with a 242 case. I ran that with a Powertrax No-Slip in the rear for a while and that was extremely streetable in 2wd but even more so in AWD, since you are splitting the torque it takes more gas to actually prevent it from unlocking on turns.
I tend to just leave it in the Full-Time (AWD) setting and eventually switched the open front out for an OX locker and the rear locker out for an Aussie. Yes, it was expensive, but it was completely worth it. I'm currently having problems with the rear, and I believe it is the locker, but it just started becoming an issue recently and I haven't had a chance to fully diagnose the problem yet. I went with the OX up front because I was concerned about unintentional activation on the road. I will say that although the Aussie was historically very well behaved in AWD it always locks up when I am turning uphill from a stop.
I run 4.10 gears with 31x10.5x15 BFG AT's, 33x10.5 BFG KM2's, or occasionally with some almost bald 33x12.5x15 Dunlop Mud Rovers my wife gave me when she exited the Cherokee owners' world. I'm pretty happy with how it drives and handles and this Jeep, with well over 222,000 miles on it, can still hit well over the posted speed limits here without scary handling characteristics surfacing. No, it doesn't accelerate like a stock Jeep with 215/75-15 tires on it, but I don't need it to. Would I go lower gearing if I could right now? I probably would, but the current setup is tolerable. I had obtained a set of axles from a 4 cylinder Jeep and that's why I'm at that ratio.
I wish I could advise you on the use of an autolocker in the front, but I simply avoided the issue by going OX. I had a great job a the time so the cost wasn't an issue when I bought it. I wish I had one in the rear as well. My Jeep is not worth anything, but the axles and lift kit and armor have been on more than one Jeep, so I just see it as a set of parts that will make any decent Cherokee a way better Cherokee and the Jeep itself lasts as long as it does before it's time to get a new one and transplant the parts. In that sense, it really doesn't matter if your upgrades far overshadow the value of the host, because the host is replaceable. That's my view of it, anyway.