It all depends on what your long term plans are.
Yeah, too much lift and little tires looks dumb. But you do what you gotta do...
You only want to lift it once, right? Maybe you can't afford the bigger tires, and you wanna someday get the trans taken care of, and then you can get the tires and gears you want later on... I've run my old chevy like that... lift and cut out the fenders to clear 40" boggers for play time, and run 35's on the street... it works for me. Looks a little funny, but even with the 35's, lock in the hubs and it goes where I point it, but that's the lockers doing their work!!!
Another thing to concider is that you could run the bigger tires with your current trans, just drive smartly. Don't be drag racin' out from every stop light (like I do), don't be towing anything heavy, and help the tranny all you can by helping it shift, not lugging or low speed in OD. Adding a tranny cooler might help also... the stock one is tiny.