How much does it really cost to run 35" tires?

It sounds like you're describing the build Midnight LJR put together with the Savvy mid-arm package. That build is probably my favorite I've seen and my LJ is Patriot Blue so I've got an idea of what it would look like.

Ultimately what I want is a reliable and highly capable rig that performs as well on and off road. I think that's what we all want though.

Yes, that right there is a very nice build, and very capable too. Short of a purpose built rock buggy, that would do just about anything most of us would ever want to do in our Jeeps.

If you go that route and decide that's what you want to do, it may be worth it to discuss it in private with Blaine and see what he would charge you to build a similar rig for you. As the guy who designed the Savvy mid-arm (among many other things), I'm not sure there's anyone better.

I agree though. The real desire for you, me, and most of us, is to have a TJ that you can drive on the road and still maintains good road manners, but can also perform exceptionally well off-road.
 
any other comparable options available for out of the box axles?
Not sure what is meant by comparable options. The overall total has to be taken into account when selecting an axle. It does little good to slap a big high pinion geared axle with 3" x 1/2" wall tubes in it and monstrous inner C's if they are the same weakest point that the stock axle had.

Ball joints are the main reason we move up to bigger axles. I'd have zero issue running the smallest HP 44 made with 3" x 1/4 wall tubes with 1 ton outers on 40" sticky tires for what we do. In point of fact, that is about what I do. 8.8 HP ring gear and 1 ton outers.
 
Not sure what is meant by comparable options. The overall total has to be taken into account when selecting an axle. It does little good to slap a big high pinion geared axle with 3" x 1/2" wall tubes in it and monstrous inner C's if they are the same weakest point that the stock axle had.

Ball joints are the main reason we move up to bigger axles. I'd have zero issue running the smallest HP 44 made with 3" x 1/4 wall tubes with 1 ton outers on 40" sticky tires for what we do. In point of fact, that is about what I do. 8.8 HP ring gear and 1 ton outers.
Comparable cost, I know there are lots of choice$ but not everyone has the need to go beyond what they can afford.