Our first CRD was lifted with a RevTech. We added upgraded shocks (Rancho 5000 series, if I recall correctly). Shocks made a huge difference.
The lift was installed at Desert Rat Offroad in Mesa, AZ. They sold the lift there and when it was all over, they said that they would charge the next guy more. Since it was their 1st install on a CRD, they assumed it would be the same as any other KJ. Apparently, it wasn't.
Their biggest gripe had something to do with the location of the airbox. It had to be removed and wasn't all that easy, as they put it.
As far as how it wheeled: we loved it. I have attached a picture of where it puts the body in comparison to other lifts. We managed Rubi Rims with MTR's and a PS/Rock Ring on the rear, but I won't do it again. We laid out a lot of cash to mod our KJ back then and didn't wheel in enough places that called for such a radical change from stock.
Most of the "lifted" models in the pic were running 2.5" lift with 3.7 engines. Our CRD is the silver one next to the Red (Corwyn's) KJ. As you may notice, some of them are stock, some are lifted with Rene rims and some have Rubi's.
That particular day, we all did some very light mudding, and some flexing on a stump. None of us really needed the lifts. All the stock models kept up just fine.