Unless you want to keep your stock fenders, a flat fender would give you more tire clearance than a body lift.
The Teraflex video makes the body lift sound like an easy option, but there are other things that need to be taken into account. Will the lift impact your steering shaft or make the steering wheel set closer to the dash? Will the transmission and transfer case shift selectors still move to the proper shifting locations without interference? Will your swing out tire carrier that is tied to the tailgate and to the bumper, which is tied to the frame, still work correctly or will there be some needed adjustments? Any electrical wiring that was run to the winch, custom lights mounted on the frame or bumper, etc... might require longer wires or rerouting. Just some things to think about with a body lift.