Ethanol, my old man claims, is good for a 1% drop in fuel economy per % of Ethanol in the gas. I don't think this carries in to flex fuel vehicles but yeah, I notice a 10% drop between ethanol and eth-free gas.
I average 16 in mixed driving, have seen as high as 21 mpg on highway. Thats stock gears & 235 series tires. I tried mods like cold air intake, exhaust, injectors, electric fans - none of it made a damn bit of difference that I can tell. Then again, around the time I was trying to squeeze mileage out of the Jeep, I was driving under 3 miles to work and going through about a million stop signs and signals on the way.
As with any vehicle, best MPG mods you can do are basic maintenance. Plugs, wires, cap, rotor, air filter, keep the injection system clean.
I dunno... I may have picked up as much as 2 mpg with the above mentioned mods, but I tend to discount that since around the time I put some mods in I changed my driving habits (season changed, I was on my bike, car got driven further per trip & no defroster).
Anyway.
There's no magic bullet(s). The XJ slurps gas. Gear it right for the tires you've got, open up the airflow for the extra power (don't hope for MPG and you won't be disappointed) and enjoy the fact that gas-hog or not, it's paid off.