1- That Michelin is only available in TWO 18" LT/E load sizes. Stock not being one of them. I have the 32" 276/65x18. The other size, 275/70x18 (33") will go right on a stock Land Cruiser 200 series.
2- If you did not adjust your mpg math for difference in tires diameter, and used your on board computer for mpg, then the larger tire could actually
look like lower mpg due to it's higher rolling resistance tread. Yet for accurate mpg adjustment you'd need to increase the number by the % larger of the tire. The factory tire is likely a more efficient rolling tire, but it's smaller, however also lighter. The AT is larger but heavier and higher friction due to tread design.
For example, using a 5% larger diameter tire will require doing the math to convert the computer mpg. While none of the computer mpg may be accurate, the change difference from one tire to another will be fairly accurate due to the odometer/mpg calculations internally. If stock size is 255/60x18, then 275/65x18 is 6.7% increase in revs/mile or mpg because mpg is based on the tire revolutions per mile. Same as how you have to remember that your speedometer will be showing 6.7% lower than with stock tires. (regardless of actual speed or actual mpg, this is simply the change due to tire size). This is just the % increase due to SIZE.
The Michelin in particular has 2 more advantages over an AT tire that really drive up the mpg: 1-It's compound is very efficient low rolling resistance while providing fantastic traction on wet and dry pavement and snow (and also somehow lasts ~100k+ miles...the only E load tire I know of with a 70k wear warranty), 2-the tread design is obviously going to roll more efficiently (it's also much safer for high speeds making time from home to somewhere 1000 miles away through mountain passes). Interestingly, the Michelin LTX MS2 weighs the same as the Goodtyear Duratrac.
The thing with your stock tires though in overall mpg is that they are also a much lighter weight tire which matters during accelerations and hills, anywhere the engine isn't just loafing along with almost no additional work.
Another way to notice the tire size change is by using a gps for speed, and seeing that at 70 mph, the engine rpm will be lower ... by approximately 6.7% in this case. Run this over 100,000 miles on the odometer and your cpo or extended warranty will actually be covering 106,700 land miles
I think for a "lot of commuting and no severe offroading" this Michelin is actually an awesome choice. The LTX being "LT" may actually all be E range but I'd look through and see. My goal was for largest tire without causing issues. Considering that my Disco 1 came with the really pretty functional Michelin XPC 4x4 and these are built stronger, I think we all get a bit crazy thinking we can't go hardly anywhere off pavement without a burly tire. To me the E load is more important than the beefy AT design unless I know there will be tons of sharp rocks.