Time for some lift!
After finding some other lifted 4Runners on the web, I decided to add a Daystar 2.5" spacer lift. At first, I kept the stock 265/70 R16 Cooper Discoverer A/T tires, even though they looked a little small.

Eventually, it was time for larger tires. I purchased a set of ElDorado ZTR Sports (made by Cooper and Discoverer ATR clones). This is a pic of the Daystar lift with the 265/75 R16 ElDorado's. On a side note, you can see the rear springs starting to sag under the added stress of the spacers.
After doing a ton of research to fix the rear spring sagging problem, I decided on a set of springs from a Toyota Land Cruiser 80 series. Third generation 4Runners use the front LC coils, which provide about about 3.75-4" of lift over stock. Pay careful attention to which LC coils you're buying. Mine came from a 1995 model and are the shorter 7 wrap versions. There are longer 9 wrap LC coils, which provide up to 4.5 to 5" of lift, which might be too tall. As, you can see the rear sagging issue is gone, but now the front looks a little low.
An added benefit to using the Land Cruiser is the very soft ride and incredible articulation they provide. The major problem with the LC coils is their length. With the independent front suspension, it's very hard to lift the front enough to match the rear. One option I'm considering is Old Man Emu (OME) 882 or 883 front coil sprints in place of the Daystar spacers. That should provide adequate front lift to all but eliminate the "dragster" raked look.
To demonstrate the amount of lift, here's my rig beside a stock 3rd gen 4Runner. This pic is with the Land Cruiser coils, 285's and about 3" of front lift.
Here, I have added a Jardine catback exhaust system. It's much louder than stock, and has a nice deep rumble. The exit location is now in the rear instead of passenger side behind the back tire. The tip looks great and it did definitely provide some additional power.
UPDATED LIFT INFORMATION
After months of dealing with sagging from springs, I ordered a set of Old Man Emu 882 coils, which I was told would provide 3" of front lift. After removing the front coil packs and taking them to a shop for dissassembly, I was told that my stock length Rancho RS5000 shocks wouldn't extend far enough to fit the 882 coils. It seems that using either the OME 882 or 883 coils require the use of extended length shocks. After all was said and done, I ordered a pair of Old Man Emu N91SC comfort valved shocks. They did extend far enough for the 882's to be installed and ride quite nicely compared to the Ranchos. As cheap insurance to protect my CV angles, I installed a 1" diff drop kit.
Here's the result...
A shot of the underside...
And, finally a closeup of the spring/shock combination. It's worth noting that with the diff drop installed, my CV angles look really good. Also, tire clearance has become more of an issue.
After putting around 100 miles on the new front setup, I can say that the OME kit is as good as advertised. The ride is firm and controlled, not harsh as some people suggested. With the new front lift, I'm sitting 4 inches higher than stock in the front and 4.75 inches higher than stock in the rear. As you can tell from the pictures, my vehicle is much more level than before.