I have a 2.5L TJ with the 30RH it does just fine in 4Lo. Comparing it to my previous rig, 84 4Runner with a 5spd, the auto makes wheeling more enjoyable for me. Maybe I'm just lazy, but it's nice to not have to lock hubs, or shift gears.
Horsepower matters on the street, but offroad, it's all about gearing. IMHO