I ran 3" and 31's on my first XJ and the tires chewed the fenderwells offroad. Next XJ had 4.5" or so lift and 31's.
DD and wheelers both, no vibe issues, and drove fine at highway+ speeds. The last one had no sway bars, so gave
me a bit of a CJ feeling, but never any problems with that, as I drove those for years.
Might have been a bit touchy for a car type going to a Jeep though.
Here is a nice write up.
LOW COG suspension setup tricks/tips (REVISED 9-24-12) - Jeep Cherokee Forum
Lift height doesn't make your wheel openings larger, your suspension will still end up compressing to the stock bumpstops, meant for a stock sized tire. Trimming is mandatory for larger tires if you want full use out of your suspension travel. If you are afraid of trimming, then having a capable rig probably isnt high on your prioroty list and you should stop reading this post now. Trimming combined with bumpstops allowed me to run 37's effectively on a 2.5” lift with plenty of articulation.