Thanks for the input Kris.
As a little background, I went to On The Road Trucks and talked to them about my options. They said the best option is a SAS, but said it would be difficult because of the way the frame kicks in at the front. They looked at options and gave me a rough ballpark of $10,000 to $15,000 to have them do it, because of the amount of custom fab that would be required.
You are right about the 8.8 aluminum housing being a weak point, but it is not a high pinion. Also, the only selectable locker for it right now is the ARB. The RCV CV shafts are over $2,700. They are guaranteed for life for tires up to 47" which is great, but does not help the aluminum housing. There are stronger upper and lower control arms available as well as outer tie rod ends. I would be concerned about the strength of the rack & pinion.
Why would the IWE actuators need to be replaced with sleeves? Yes , my truck is equipped with them.
I don't have much of a budget for these mods yet but I do want to increase the capabilities of my truck. I also don't want to spend a bunch of money on upgrades and throw it away later if I do an SAS.
One of my thoughts was to fab up a Dana 60 as a bolt in replacement for the stock 8.8, use RCV CV shafts and upgrade all the control arms. It would probably need a custom power steering box system to replace the rack and pinion at that point. I'm probably at the same point price-wise as a SAS, but the upgrades could be done piece by piece over time. Remember, this is my daily driver so I can't have it disabled for too long.
I'm not opposed to doing a SAS at home (with some skilled help) but what would be involved, assuming I am willing to source parts from salvage yards to keep costs down? Would I need to use leaf springs or could I use coilovers? With the frame kicking in at the front, I don't know how leaf springs would mount or how the 4-links would mount.
Finally, my reasoning for wanting to go with bigger tires is for much needed ground clearance due to the long wheelbase, and to help clear the IFS cross members and rear diff.