[Bigjerm]

As other have said, ditch the TB spacer and chip. Only Chip I would get is one that also allows me to change the size of the tires and gears so the computer will read the right speeds with the bigger tires.

Your lift is kinda big for 35” tires. If you plan to go to 37’s, great, but you can wheel 35’s with 2.5” of lift, 3” is idea and no need for the BL unless you go 2.5” and add the 1” for the extra fender clearance.

Also pay attention to the back spacing on the new wheels so your 35’s will fit and turn without rubbing

 

[Bigjerm]

Also I was looking for a performace upgrade because i know that with all the added weight of tires my rig will be slower on road... any other suggestions?

Gears. Getting re-geared for the larger tires will do you better than any chip/intake/exhaust combo out there.

 

[Bigjerm]

Good list. I can say from personal experience the Xterrains are first GREAT on most all surfaces but rocks are best. Once I got a little wear on them they started to fill up fast with mud but were still great on the rocks.

Now the Wrangler MT/R's have been a great all around tire for me so far.