I have a 98 TJ with 102,000 miles and it has never been a daily driver-I bought it with around 65,000 about 8 years ago, and it is a fun top-down vehicle car in summer, and a serious have-to-get-there-in-snow vehicle in winter. It is a 5 speed, and a 4.0 six-a great combination IMO. It has the dana 35 and I have no issues with it, with 31x10.5 All-terrain T/A's and the original 3.07 rear. Jeeps are bricks aerodynamically, so do not expect good gas mileage no matter what engine or trans you have in it. The 4.0 is about as bulletproof as any engine you will find, and we have done little more than rebuilt the starter, replaced the TPS (don't get crazy with the hose when cleaning the engine) and the crank sensor (PITA) it on a new Sunrider top from Bestop (nice because on a decent day you can 'fold back' the top without having to drop the entire top). I change oil every year (usually less than 3000 miles, full synthetic), and upgraded the stereo/CD/speakers with a good system (loud is important since it is not a quiet vehicle to begin with). The back seat is out and i installed a 'trunk', which secures items in a secure, hidden compartment for safety. It is very easy to work on, and parts are not crazy expensive or hard to get. If I had to use it as a daily driver, I might not like it very much, but as a dependable, fun and 'different' mode of transportation, I doubt you could find anything as adaptable as it to all situations. The resale value of these is incredible, I got mine for around $7500 in 2003 and it would still get easily over $5500 today.
BTW, on Jeep forums, the ones prior to the TJ (1997) with the 'square' headlights are not looked upon favorably by purists-I like the ride compared to the earlier leaf-springed versions, more civilize yet off-road (get quick disconnects for the sway bar) and it can do anything better (+) than earlier versions.
Just a great, basic vehicle.