Bilsteins are proven to be the best shock between stock and going full blown coilover.
IMO you'd be best with going to a 4x4 spring with bilsteins on middle or bottom setting. I believe the pre 08 4x4 springs will give you a softer ride but i'm not sure. i'm sure you've found the threads where trucks like yours ran the newer 4x4 springs with bilsteins and got like 4" of lift.
Maybe look at the Fox 2.0's if you don't wanna drop 1k on coilovers. TAP has them for 800 i believe. you can then fine tune the ride height and you can re valve them to get it perfect.
IMO you'd be best with going to a 4x4 spring with bilsteins on middle or bottom setting. I believe the pre 08 4x4 springs will give you a softer ride but i'm not sure. i'm sure you've found the threads where trucks like yours ran the newer 4x4 springs with bilsteins and got like 4" of lift.
Maybe look at the Fox 2.0's if you don't wanna drop 1k on coilovers. TAP has them for 800 i believe. you can then fine tune the ride height and you can re valve them to get it perfect.