Alright gents, I've been reading this thread with great interest because I wanted to learn about my options with the LR4.
It really depends on what you wish to do with the vehicle. The Achilles heel of the LR4 is wheel/tire diameter, particularly in soft sand, mud and snow, where flotation is required for such a heavy vehicle. I am attempting to push the upper limits of performance with this platform, but in reality, just installing the spacers and LR3 wheels with a 31-32" tire is pretty ideal. Use the IIDTool to manage height and run the truck 20-40mm above stock and align for that height. The big problem with the 19s and 20s is that there are NO tires with decent sidewall strength in the size suitable for the LR4. In 18s, we have lots of options, including three-ply AT KOs, Falkens, etc.
For your situation, it might still be a good idea to have two sets of tires/wheels, as it is still easy to tear-up the 18s on the rocks. The LR4 is a classy truck, so you may want the 19s and more street-biased rubber for daily driving.
What you don't want to do is run 40-60mm of IIDTool lift for long distances without aligning for that height. I have my truck aligned for 60mm of lift. That is the cool thing about the IIDTool, I just plug it in and drop the car 20mm for highway runs, then add another 10-15mm over the Johnson Rod height for around Prescott or trails. This still allows running in "Off-Road" mode without a fault or too much compressor stress. There are upper limits to what is possible with the rods and IIDTool, which so far seems to be Johnson Rod lift of 60mm + an additional 10mm in the rear with IIDTool adjustment.
Hope this helps