The front sway bar is designed to keep the body of the jeep straight up and down when cornering. The information supplied here is my own perceptions and understanding of how products work. The secret to a good street ride is the combination of the front quick-disconnects for the sway bar, and the adjustable control arms. These allow you to fine tune both axle angles after the lift. This 3 inch lift clears my 33x12.5 BTG muds on 15x8 rim with a 3.75 inch offset without any problems.
Rocks do a good enough job at bending things.
It's a bit softer and higher than stock, but now not as radical as some of my buddies rigs. I know Jeeps come new with a 30 inch tire package. I got the standard small tires that come on the stocks rigs. From what I have read a stock TJ will clear 31 inche tires without much need to modify the suspension or add a body lift. If you want to clear 32 inch tires then you will need a 2 inch lift and rims with a 3 or 4 inch offset.