Thin walls? Depends on the year of the casting.
AMC designed the 4.0 as a ROCK SOLID casting, and it's possible to take it to 4.000" bore(+.125" oversize!), if you check the wall thickness first. That's still leaving a minimum of .100" of cylinder wall all around - plenty safe margin.
Then Chrysler got involved, and made NVH (Noise, Vibration, Harshness) revisions. They also lightened the casting significantly - and the cylinder walls were the first to lose material. They forgot that the XJ is more "truck" than "car," and damn sure isn't a "luxury car." If you want smooth, buy a Cadillac or a Lincoln.
There's no reason at all you can't bore the block out to +.060", but I'd get it ultrasonically checked before you go any farther. .060" is generally accepted as the "standard" maximum oversize when boring.
5-90