SOA (Spring Over Axle) will greatly reduce the road worthiness, but it's extra cheap and is good for off roading. Most lifts will also reduce road handling to a lesser degree, and ANY means of lifting it will raise the center of gravity making it less safe cornering and such.
35's can cause issues if you got an Iron Duke 4 banger (but it's doable), and on a CJ, can actually make it less capable off roading if you don't have the torque to power that much weight over obstacles.
Nobody can really answer that question for you, because it's really a personal preference sort of thing, and based on what you have now, how much you want to spend, and most importantly, how you plan to use your jeep.
Make some jeep friends, go on a few trail runs, and you should figure out pretty quickly what the right way to go is.