My first LC (2000) came with new Michelin LTX tires and it rode like a dream after I put OEM shocks on it and they broke in (they started out stiff but after about 10k miles they hit their sweet spot). Floated down unpaved roads and everywhere else. Amazingly good. Pure stock but destroyed bushings and ball joints. I think and my wife agrees that it handled and rode far better than our GX460.
Current LC (1999) has the 285 KO2 tires that it came with and the ride I think is pretty awful. New OEM shocks with dry but serviceable bushings. 4Still handles better than the GX460 but the ride is harsh. Shocks aren't yet broken in though. But I feel every pebble in the road which I never did with Michelins.
The GX, by the way, has Michelin Defenders. 95k and all original. The suspension on the GX is pretty stiff but I think the Michelins smooth it out a lot.
I think part of your problem is the rear shocks but the majority is the tires. Although Bushings definitely play a part.
I live in the backwoods and also spend a lot of time in the mountains. My cruisers pretty much go to hell and back. I'm in sand, mud, snow, gravel, trails through woods, towing, etc. I don't have to wheel because that's my life already. I've never felt the need to go anything but stock. OEM shocks are $50 each and the ride is what was intended. The Michelin LTX were fantastic all around and after 60k still had some life left.
My thinking is that the engineers who designed the LC made the best vehicle of this type in the world so why second guess them and reinvent the wheel? It's not like they sold dumbed down versions of the LC or LX. Unless of course you have a very specific purpose or like the look. Otherwise stay as close to stock as you can stand to.
If I were you and the ride was driving me crazy I'd replace all 4 shocks with OEM and get some Michelins. Then I'd slowly work through the bushings.