Sorry for the delayed response. I used new stock control arms but will be switching to tubular arms at some point. You end up with lots of shims on the upper arm if you use stock. I am searching for a rack and pinion option also. In my opinion that is going to make the biggest improvement in...
I did a 6/8 drop on mine and I find the ride to be fine with the stock springs in the rear but it rides better with a few pounds of air in the rear bags. As far as the front goes you may want to at least change out the upper control arm so you don't have a 1" thick shim pack when you get it...
Sounds like you have it covered. I live in an area of Michigan where I don't lock mine half the time but I suspect that will bite me in the Ass one day.
Mine has a version of limited slip and I think it is called Max Traction or something. I looked up the axle number at one point but can't find the link anymore. Mine seems to always be in locked mode and talking to @OldBlueDually I find out that was a common problem. He said his dad is...