Well said.
I'll add a little local spin, since I live in Denton...
I wheeled all over the place on 265s before lifting and locking. I have a 99, so no difference in coils was needed. Generally speaking, the lower stance will make you have to drive more on the trails... thats about it. When I take groups out for trail runs, the problems arise when the lower trucks try to take the same lines as the taller trucks, which also tend to have more experienced drivers. You will need to be more careful in the bumpy spots, but will have the advantage of being supremely stable on the off camber stuff (great for NW Arkansas).
I'm not sure what your skill level is, but your truck is capable of completing all the reasonable trails around here. May not fair too well at Bridgeport OHV park, but it will do the K-trail, Little Sahara, Palo Duro area, and everything in between just fine. I would recommend sticking to a 70-75% aspect ratio for a lower truck, just because you will need a little more flotation due to lack of overall clearance (265/75/R16 is perfect). Sticking to a tire size closer to stock will allow you to avoid a re-gear. When you have 3" of lift, you will want taller gears, which are expensive.
As Brian said, you will leave your mark on more of the trail, but with some improvements to the armor, this should not be an issue. If you are looking to get into some harder wheeling, the lower stance is probably not the right choice, but if you are more interested in light wheeling and the occassional jaunt down a dirt road to a deer lease, camp site, or local fishing hole... the 99 coils and the 265s will be a very good choice.
Hope this helps.
Lets just put it this way... a truck with 265/75/R16s can complete the Rubicon, but a truck on 315/75/R16s can do it without body damage. If you want hard stuff, go big or go home. If you want versatility and reliability, stick close to stock specs.
Leary