A 4:1 "Tera-Low" isn't a bad choice if you do any type of rock crawling. But it doesn't help your fuel mileage nor daily drive ability. Re-gearing your axles is actually the first step you should take after going to bigger tires. This will place your gearing back to near factory settings, and give you 70-80% of the gas mileage back. You will loose some due to the rolling resistance of the bigger tires.
If you find yourself doing a lot more rock crawling than say mudding and your finding yourself needing that extra torque out of your motor the 1200$ 4:1 kit isn't a bad investment. Now if you never taken your transfer case apart, and or afraid of grinding on to open some clearances for the bigger gears then find a local shop and have them do it. Since changing the out-put shaft also requires that you do a SYE a new rear CV type of drive shaft is required.
The Dana 300 doesn't have a slip yoke. It is a fixed yoke. He would be able to re-use his driveshafts as all mods would be internal.Since changing the out-put shaft also requires that you do a SYE a new rear CV type of drive shaft is required.
My Jeep dosent see the road except to get gas or beer runs from camp. It gets trailered to the trails, and my driving is 95% rock crawling. Did the crusher @ browns camp last weekend, and my gears are a little too tall(4:10). Changing the gears, new cases and lockers would be just as expensive, especially ith a D-70 out back.