I've been taken a long hard look at your burb pictures and IMHO see those big tires are not centered in the wheel wells front or rear and the tires look like they would hit the body work over rough terrain unless of course the suspension is so stiff there is little or no travel so they'll never hit. Stiff suspension will beat the snot out of the vehicle and you over time.
Lots of lifts out there don't keep the frt/rear differential (s) in the proper location as in when you go up higher the diff moves forward at rear and rearward in front without proper fitment, the diff needs to be moved back so wheels are centered in wheels well.
If I remember right, 35" tires fit that vehicle w/o lift by using cutout fender flares. From here custom mods to front foot wells and rear wheel wells would allow 37's.
The Fabtech lift just drops the front diff in the same factory location. You are correct the front tires do hit. One of my flares is cracked now from that exact problem. In my opinion the front centerline needs to be moved forward 3/4" maybe more.
I have looked at the Offroad Unlimited SAS conversion kit which moves the front axle centerline forward, but it uses leaf springs and is very expensive. I really prefer the Pure Performance SAS kit. It uses the current Dodge AAM front axle and is much more cost effective. I did not use either of those kits due to my current slip yoke style transfer case. The diesel conversion will eliminate that issue so I suspect I will be installing a straight axle in the near future.