You do have the conundrum. The problem is if you aren't willing to commit about 50 grand to it, you won't do them very well. If you can commit that much, you can afford a TJ Unlimited.
I don't understand the chopping the frame dealio. If you are talking about hacking into one side of the wheel arch, then no, I never do that. The arch always stays centered over the axle. If the axle moves, the wheel arch moves with it.
I also keep forgetting to mention that my TJ-6 has a small GR tank under the back of it. I've stared at it a fair bit trying to figure out how to move the axle back for other applications. I still don't see it.