I would get rid of the spring blocks ASAP if it were me(axlewrap related nightmares galore), and trade those 3" body lift pucks for 2". With some Warflares, you can still clear those 38" tires no problemo.
4.11 with 38" tires is going to be a little tall for the road, but liveable. It can still have plenty of crawl if you have the T-case and transmission gears for it.
I have a 3-1/2" suspension lift, and 2" body, now I just need to come up with some more $ for refurbishing my axles *(still stock) and some 37" tires. Gonna relocate the filler necks to facilitate the Warflares I am planning for.
Good Luck and have fun, sounds like a good time. One weekends worth of (your) work, and you can have a pretty awesome rig going.