Yes, it can be done.
The modifications required are extensive, and should be attemped only by experts in welding and masters of suspension geometry understanding.
You can achieve a very good ride quality and suspension articulation with an SUA suspension upgrade, if you select the right components. Skyjacker softride or BDS 2.5" lift kits will ride well (BDS will be stiffer at first), and will accomodate 33" tires (may need an inch of body lift to prevent rubbing). Better yet, upgrade to YJ spring sets/mounts, or Holbrook long leafs.