They are good machines... I would say the drivetrain is far superior of the cherokee you mentioned. Many people used them for off-road that is harder than just going hunting or fishing.
The engine on this year (96-2000) is probably the low point of it with only 170 hp.. but then again, on 4 low, it does not matter really.
As for me, I have a 2001 and have locked the front and back with ARB lockers and I use it in hard to very hard trails. It has not fail me yet ...
Don't forget that the rear axle on your truck is bigger and stronger than a dana44 that you see on the jeep rubicon !... bet you did not know that !
If you are looking to lift it a bit or simply level out the suspension, check here :
http://4x4design.com/Pathfinder_R50_96-04.php at the bottom of the page. It is my company, and we manufacture suspension spacers. We also make skidplates, but it is now on hold until we get new fabrication machinery.
Cheers.
S.