It's an 8" with 3.73:1 gearing. The regearing market has somewhat matured for the FJC and so there are a few options for regearing without replacing the entire 3rd or axle housing. I could go as tall as 4.56:1 with stock axle/3rd. The IFS clamshell diff is what held up options for a while. As much as I would like to, I'm not eager to rebuild all of that just yet.
Given the options, I wanted the cheaper route. If Toyota would not have covered it, it would have been cheaper for me to buy 4.11 gear & pinion sets and install them myself (with help) than to pay Toyota to install a new 3rd member with stock gearing (which is all they would do).