A number of reasons: (pulled these answers from when I answered this on slickdeals. I did a 1" spacer in front to even the suspension out)
1. The skinnier width should help with MPG even though the tire is much taller (This ended up being true with the new tires. They get slightly better mileage compared with my highway tires did in stock size)
2. I am running spacers so a slightly narrower tire should help with potential rubbing when flexing the suspension (Zero rub going forward. Tested some flexing but haven't had much of a chance. Slight rub in reverse so I need to move the liners.)
3. Rolling resistance is lower compared to the tire you listed. Should help minimize any sense of power loss by the larger tire. (Seems to be the case with increased MPG, calculated by hand)
4. Rotating Mass. You should save around 5 pounds per tire compared to the tire you listed. I would have to research it though. I don't have the chart in front of me.
5. Frontal Resistance is reduced. The tire will cut through mud, snow, sand compared to a wider tire. This one is a pro/con for some. A wider tire presents flotation which is good in some respects like deep mud or snow but very few of us would be buying at A/T tire to go tromping through a foot or more of mud/snow
Cons:
1. Trail damage. A wider tire should protect you a bit more from trail obstacles but I'm not kidding myself. My truck will spend more time in parking lots than offroad. I won't be crawling on rocks and mud but maybe some back country roads.
2. Stability and high-speed deflection. A narrower tire potentially makes your track width more narrow and subsequently could hinder stability. Since I am running spacers it should not be an issue.
Main source of information:
http://www.expeditionswest.com/re..._rev1.html