With 35s on stock gears you are overgeared by ~ 1 gear. So, you are basically starting out in 2nd. From there, there is not much difference except that you'll run at lower RPMs on the highway. In low range, you'll still take off like a rocket in 1st, so, not a problem.
I have had both BFG AT KOs and BFG MT KM2s. The KOs last longer and are quieter. The KM2s can take more off-road and are much better on rocks and in mud. I'd go with 35s if you are going to do any type of serious wheeling.