The smoke is from old age. Compression on a new engine is 150 for a 2.5L. Your getting some bypass on the rings and some from the valve guides. I would run it until It quits but have plans for a swap or overhaul. Enjoy it it's running.
89YJ 2.5L TBI, AX-5, NP231 SYE, Ford 8.8, Yukon Grizzly, Tom Woods Shaft, 33" BFG T/As, 4" lift, Warn VR10000s.
AF Jeep Club Tail #184