×2, that looks like a nice truck.
I'll further back up what others already said, the steering linkage angle is probably way off because of the lift, causing much of the poor handling (the missing shock would be partly responsible too). The Skyjacker #FA600 drop pitman should take care of the steering issue if that's what it is (and it is a very common issue on these trucks).
If the truck felt gutless when you stepped on the throttle though, then it probably has never been regeared for those tires. This will be a fairly big chunk of change if you need to have it regeared. However if you had bought a stock truck and put 35" tires on it yourself you'd still be in the same boat, so it already being regeared would likely add more to the truck's value than a lack of regearing reducing it's value.
Wheelbearings are an easy job, though you do need to use quality bearings on these vehicles (Timken is preferred). Also, never mix bearings & races, buy Timken SET-37 bearing sets and ALWAYS replace the races, even the ones that come in new brake rotors.
Check around the front axle lift brackets for any cracks (the bracket-to-frame tabs of the bracket on the passengerside in particular). Also check around the top of the front differential housing for any cracks or a hole punched into it (some, but not all lifts have a drop plate extension bracket that damages the front diff housing).
If it all checks out, then I'd say go for it.
Welcome to TRS, by the way
