I agree that a turd is still a turd! I started down this road and talked with a lot of people in the club about axles! The general consenses is that the more you get into off roading the bigger tire, higher horse power, lower gears, ect.. you'll want to run! Money being hard to come by, I don't particullarly want to spend it unwisely on parts that I'll end up replacing down the road. That's why I haven't bought a locker for my stock running gear. I want to keep my week link external! Trail fixes are inevitable, I'd rather replace a u-joint or limp home with only one drive line in than to spend 3-4 hrs pulling broken axles and hoping in the process that my carrier didn't come apart. I think instead of spending money on "snake oil" for the dana 35 or 30 for that matter, save some $ build your axle of choice over time and then once it's done bolt her up. BTW I was quoted $500 to set up an 8.8 with TJ mounts (parts and labor)$300 for the initial buy, so if you can find one with your ratio and a limited slip you can be into an awesome axle for +/- $1000.
Your weak link now is your Dana 35's spider gears and carrier. If you grenade the carrier you'll be taking your rig home on a trailer, because your c-clips will fall off and spit both axle shafts out. The Dana 30 is a great axle and will serve you well with up to 35" tires. Again if your axle is stock and your goal is to have over a 33-35" tire this isn't for you. On the other hand if you already have gears and or a locker and want some extra beef then it is something to consider. Personally I think this mod would be awesome combined with a detroit true track. I can do this in my driveway in a couple of hours and use all my stock componets. No down time, no working out the bugs on a new axle, and I can reuse things I have already bought for my rear end.
Since everyone has turned this into an 8.8 thread, I have thought about doing an 8.8. But to do it right there is more to it.
8.8 axle $300 locally
fresh brake pads, calipers, rotors turned $150?
TJ bracket kit $250
wheel spacers $150
labor for welding on $250-$300
That ends up being around $1100 for an unlocked ungeared axle. Then you still have to deal with all the little stuff like drive shaft adapter flange+ a new U-joint. You'll need a spare flange because those tend to break. New brake hard lines, brake hoses, proportioning valve, e-brake cables, 4.88 gear set(in my case). Now if you have a lift on your rig already and don't have an SYE and CV driveshaft you'll need to buy that because the off set center section combined with poor drive shaft angles will almost certainly give you vibes. Oh and us TJ guys would have to buy adjustable control arms to set the pinion angle either way. Suddenly what I first thought sounded like a cheap axle swap turns into a much more expensive project. Then you still end up with an unlocked axle