Swampwrecker,
You make a good point and it reinforces my original assertion. I made a similar statement to yours regarding off-roading in Florida and was taken to task by certain individuals on other boards. What it all comes down to is what type of off-roading are you going to do? Although I live in Florida and mud and sand are the predominant fixtures to play in, I had to build in versatility because I also LOVE to play in clay pits and sinkholes. This means articulation, mud and sand. If mud is your primary off-roading surface, skidplates can trap mud and overheat transmissions. In an Xterra (or any low hp vehicle), low range is vital to spin the tires fast enough to clear the lugs of mud. Because of this, a 3.5 - 4/1 low range isn't necessary unless you build the motor and lower the power to weight ratio. That will allow you to spin the tires fast enough in high range where low range is no longer a factor and you can now do whatever you want to with the low range gears.
And this type of logic can be used in any enviroment. I am sure this statement will start controversy as it has before, but I stand by the assertion that each person should know what they need and how to accomplish those goals. They discover this by experience. It's kind of like the two schools of thought on mud tires. Some guys believe tall and skinny is the way to go. Their logic is that it allows them to reach deep into the mud to find the hard pack underneath. Then there are those who believe wider is better. It spreads out the weight over a wider area, keeping the vehicle from sinking as deeply into the mud and providing more surface contact with the mud for traction. I have seen both schools of thought work. Taller is better if speed is not the goal. They can just crawl through the mud like there's no tomorrow. Wider tires whiz through the mud like little hellions cutting the gates at 40 plus mph.
The important thing is, decide what YOU want to accomplish. Then use the experience you have gained driving your truck to set and reach those goals. If you go about it this way, you will be far happier with your trucks performance than just throwing parts at it.
Let the flames begin!