Some of your pics and videos make me glad I don't buy used lifted rigs lol. They look like fun though. In my opinion you really need to do research before you dive right in, otherwise you may be in the same boat your in now with a messed up paint job for not researching enough or inexperience.
Doing the wrap could workout for you, they can be VERY difficult with all the curves, joints and body panel seams. It's obviously not impossible but I'm sure you don't want it to look like crap if its not done right either.
As far as the wheel spacers, different strokes for different folks but that's not going to help the wrap with flinging rocks or anything else up when your having fun. I would remove them but its not my truck. Good luck with the project though!