If it's for cosmetic, I definitely recommend doing nothing. More lift, bigger tires, etc.. almost always equal a worse ride, lack of power, and so on. Keep it small and nimble... You're already out doing your buddy. Why reduce your performance to match his?
Having said that for desert running the 2" shackle reverse plus the OME would be a good combination. Make sure and save money for good shocks. If you're thinking of spending $19.95 on a shock, don't! Pony up and get something good.
Good luck on whatever you decide.
-Eric