Tire weight

The sidewall ply count was definitely a factor. PSI on road for the KM2s was usually happy around 26 for tread to print evenly. Off road they were happy around 10 psi.

The Falkens don't print evenly on pavement until down around 20 psi. Around 15 psi they are low enough to absorb some road irregularities but wallow too much laterally for my liking. I typically run them around 20-22 now and typically drive highway at 60-65. I avoid interstate in the JK because 80 mph with the 3.8/35s/short wheelbase is just unpleasant around semis and South Dakota crosswinds. Off road I go down to 10 psi but the Falkens are just a stiffer carcass than the BFGs were so they keep their shape and don't deform until pressed against an edge or obstacle even at 10.

I also run a 31/1050 BFG KO2 on another vehicle (lifted Bronco II). Very well behaved tire and great traction for running on two tracks and exploring. No issue with weight or diameter increase negatively affecting ride quality on that rig.

Have another set of 285/75-17 General Grabber ATxs that I run on the 2dr jk in the winter now. Fantastic tire for winter conditions. I swap them out in the spring and late fall for the 35 Falkens. The Grabbers run well but I don't have any other 285s (they measure about 32") to compare them too.

But... to the OPs discussion... the (heavier/bigger/larger radius/increased ply) I go, the harder the work on the suspension at any city/highway driving speed. I still think its fun to try new tires and sizes. If I were concerned with wear and tear I'd probably wheel it and drive it with 33's. But 35s are fun and I like the aesthetics and the off road benefits so it was worth the expense (to me) of keeping the suspension tuned for what I run (shocks/bearings/ball joints/springs/etc)

I regeared / updated program a long time ago so when I first measured MPG after gearing it went down (I think I was around 17 before as a stock Rubi and around 12-13 after lift, gears, and KM2s - that's from memory not sure if it was that exactly). I do know that my dash mpg indication wasn't even close when stock and hasn't been close when I did check after I first regeared. I use the programmer to update the tire profile every time I rotate tires or change seasons - but the the jeep still makes a horrible guess on the mpg. Speedo is dead on. Computer just seems to be innaccurate on the calculation. So I just ignore it now. No idea what my actual MPG is now with the Falkens. I'll see if I can grab a good measurement on the next tank.
 
Yes, the first step is to reduce the tire pressure.
Maybe the Falcon shocks are stale and not up to the task.
Fox 2.0s were good for about 30k miles. Rear shock blew a seal. I suspect winter salt and grime did that one in based on appearance when it let go. Replaced with Bilsteins. Ride quality took a hit with that swap. Fox 2.0s going in for a refresh this summer. They were very well tuned for the lift and BFG KM2s. Dramatic improvement over stock. With the Falkens (installed before Fox 2.0 died) the ride quality was still tolerable but the Fox shocks and JKS springs felt like every bump was a heavier hit than before. The Bilsteins are a different feel altogether. Hits feel sharper and damping seems less proactive. Almost like the shocks let that first bounce go further in the travel before the shock dampening sets in. That’s just a description of the road behavior. Slow and over obstacles it dampens more smoothly. I would describe it as a more linear onset in the dampening when it’s a slower hit. The Fox 2.0s were a better tune for my Jeep. Worth going back.
 
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