The Rancho lift does not directly increase clearance between the differentials and the ground, but it does increase clearance for the rest of the vehicle and it allows you to install larger tires which increases clearance under the differentials. Next time your under your H3 take a look at where the majority of the scratches and dents are located. Most of mine are on the Hunner front skids, which is usually where I get hung up getting over obstacles. It is a very good thing I have the Hunner front skids, but I like to use them a little bit less. I also hit the OEM UCP quite a bit. The Rancho lift would help quite a bit in those areas.
The controversial improvement is, if you take advantage of the increased fender clearance to accommodate bigger tires. You could go up to 37" wheels (actually 36.8" diameter for BFG KM2) which would increase ground clearance nearly an inch relative to 35" wheels. Of course the controversial part is would that increase in ground clearance make the vehicle more or less capable when you consider the increased potential to break half shafts and tie rods. Another issue is with the Rancho lift you have to reduce backspace 1” so the tires will be sticking out another inch.
