Will this bumper...

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Eliminate much of the trimming needed for me to run 265/70-16's if I use it with a Rusty's 2.5" lift?

Yes it will with the correct BS on the rims,the pinch weld will still have to be pounded down though.

Ok, so enlighten me. What's the "correct" backspacing on the wheels? More or less than stock? Can I just add spacers?

After lookin' at it closer, I think I'd prefer 245/75 over 265/70 anyway. It's basically the same height, and the narrower 245 shouldn't rub as much, right?

However, would it be too hard to run 265/75's with same bumper?

Well in that pic Ted is using 16x8 Moab(5" BS-stock 16x7's are 5.5" BS) rims with 245/75's and rubs on the upper a-arms.I have a ARB bumber and 16x7 rims(4.25" BS) and 265/75's and no rub anywhere at all.So yes BS is key but it's a hit or miss to find the right combo.

I have not cut a single thing with my Rusty's 2.5' coil lift and 265/70-16s.

SR, as I said, I'd probably go with 245/75 over the 265/70 since it's the same height. I'd think the narrower tire wouldn't create as much drag, too. Now, if I can fit the 265/75, then I might go with that. But I ain't against using a 235/85 either since that's the same width as stock, but like 3" taller.

Hmmm... decisions, decisions.