Here’s your dilemma between these two approaches in my thinking.
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Once you go beyond 3” you are into a whole new ballgame. I guarantee you can run 36’s on a 2” lift if done correctly, and outwheel any rig in this forum that’s on 35’s. See CasterTroy build thread IH8MUD.
So if you go to 3”, which was your original thought, Teraflex, you can keep the factory CA’s, which are a very good design and save $1200 there. The 1-1.25” BL will increase your ability to run larger tires and less bumpstop, increasing articulation and shock travel. So you will be improving off-road capability. Plus the added MML will eliminate the need for a TCase drop, another off-road advantage. Plus, it sets you up for a TT down the line if you want, another great benefit.
If you really wanted to increase off-road capability, get a front lunchbox locker. That will be far more advantageous than CA’s.
If you wanted to spend more later, you could add MCloak fenders/flares and easily run 35’s on that lift. You’d be virtually unstoppable.
There is more than one way to skin a cat.