Jamie!
Sorry I didn't catch this topic (until you mentioned it in the 4X4 forum)!
I don't actually know how wide the stock 17" wheels are, so I cannot speak effectively to what size tires you can get away with on those wheels. I will, however, offer the following observations, after putting about 3000 miles on my BFG Mud Terrains.
I have mine mounted on 8 inch wide wheels and the wheels appear to be just the right width for the 285/75/16's that I'm running. Seems to me with a little "puffiness" you could certainly get away with a rim width as much as one inch narrower (7inch wheels) with this rubber. I'd hesitate to go narrower than 7 inch wheels with the 285's... but that's just IMO.
The tire noise on the street is noticable, but by no means intrusive... and that's with Mud Terrains. An All Terrain tire would be even quieter. The ride is, if anything, a tiny bit better, although I did notice that at highway speeds the steering is a little more vague on center.
Fuel mileage is hard to nail down exactly, as my driving habits and routes change frequently, but based on the numbers I've gathered, it looks as if I'm losing between .2 and .8 miles per gallon with the larger tires. This is further complicated by the fact that the dealer's largest computer setting isn't as large as my tires...thus the speedo (and odometer) are a bit off (about 4%) and I've actually traveled farther than the odometer indicates.
Performance seems unharmed by the larger rubber... my Av seems to have a rather flat spot just off idle that bugs the hell out of me, but it was present with the stock tires as well. I've not actually run a 1/4 mile, so I have no objective data but "seat of the pants" feel makes it hard to tell the difference, leading me to think that you'd lose maybe a 10th in the quarter, if that.
This is all just IMHO
