I also live in Southern California, with the exact same criteria (90% street and 10% trails/Big Bear).
I own a 2016 SR5 Premium 4X4. Installed a King coilover in the front at 1.5" lift. Installed King shocks in the rear with NO rear lift. I am running the TRD 17X7 rims and 265/70/17 Nitto Terra Grappler G2's. My opinion is that I achieved a nice rugged look and the tires do not look too small. No loss of MPG, the tires are as quiet as one could ask for and they wear well, currently have 14,000 miles on them and they haven't lost any tread. If I had to do this again, I'd do it exactly the same way.
Your setup sounds like exactly what I want to do. 90% DD and 10% Mtn, dunes, trails. Considering King or Fox for the front since they are progressive and won't be too stiff with KDSS but stiffer than stock for the whoops.
Thank you for chiming in with your setup! I am stuck with 275s load E till 50k lol.