Baystate Jeepers

On a YJ with 35's and SOA, are stock springs ok or is a 1.5 in lift better? I will be cutting some sheet metal but don't want to get too carried away. This is what it looks like with really worn out stock springs with add-a-leafs installed and 31" tires. Not sure how it will look with new stock springs and 35's. The rear is also a bit higher than the front. Can I use 1" lift shackles in the front to make up the difference?

On my heep I ended up running 2.5" spring SOA with 35's. The stock and some aftermarket 1.5" springs I had would soon sag out. I bought a pair of BDS 2.5". They have a lifetime warranty. If they sag you can get a new pair.
Used the warranty a couple of times over the years.
I hand to do just a bit of sheet metal trimming namely the front and rear of the rear fenders by about an inch or so.
Personally I would not run any shackle lift. Shackles, especially longer ones will be the first thing to bang into rocks. I've bent a few front springs from doing just that. You risk destroying your tcase if the spring gets bent & shoving the driveshaft into your tcase.

I noticed you took off the anti-wrap bar. Are you planning on running one?

I only took it off because I was going to use the Rubican Express 4.5" springs originally. I will be putting it back on soon.

Ahhh... good!

If you use BDS springs, you'll get the most out of them by using their dog leg shackles. They clear the military wrap, compress better and droop better - so they last longer and work better. But take care and avoid smackin' 'em into rocks. The amount they drop down ought to be about the same as stock, because they'll be at a different angle.
Most spring sag in the first two to three years is the result of the bushings failing.

Buy better shocks, though, like Bilstein. Actually, any gas shock is better than a hydraulic. BDS shock bushings wear and then make clunks, there is no warranty on bushings.