Currently have 33s on 4.88s and need new tires soon. To upgrade to 35s:

1. Is it absolutely necessary to upgrade the axles? Will be getting the axle housings trussed and gusseted.
2. Will the stock steering system need an upgrade as well?

 

might be difficult to steer if you still have the push pull steering. other wise go for it. im still running stock axles with my 37's. you will notice more lack of power,

 

With just a 2.4 and 4.88's it will be slow but she'll go. I would say up grade to a histeer setup and do hydro assist if your actually crawling enough. Even 33's in rocks are hard to turn. Your inners should be fine, bot like you have a v8 pushing those tires.