The drop in mpg is not caused by the computer miscalculating anything, it's caused by your engine operating inefficiently/lugging at too low of an rpm with the 35's and 3.73 gear ratio. Raise the engine rpms to a more appropriate level with lower ratio gears like 4.88 or 5.13 and your mpg will go up. I was getting an accurate sub-12 mpg with 35's with 4.88 gearing due to the too low of an rpm the 4-speed automatic transmission was causing despite the 4.88 gears.... the 4-speed automatic's Overdrive cuts the rpms by 31% which caused the engine to lug on the highway. Yes the speedometer was recalibrated to be dead-nuts on. Replacing the 4.88 gears with 5.38 last year raised my mpg to the high-14's.FWIW I have the Dana 44/30 with 3.73, 35s, 5spd, 4.0, and I am getting about 12mpg mixed. When i was on 31s, I was getting about 14.5mpg mixed. I think most of the drop is from the computer miscalculating rather than the actual tire. Since the tires circumference is about 110" for a 35" vs 97.4" for a 31". Which is about a 13% difference. And the 12mpg vs 14.5mpg is about a 20% difference. So most of the poorer mpg number is just the sheer miscalculation of the computer IMO.
Power is definitely different however, 5th is nearly useless on the freeway if there is the slightest grade with the 35s. I am planning on going to 4.88s.