Fill in your profile a bit more, so we can make good suggestions. What size tire are you running? What size tire do you eventually want to run? A Dana 35 has a bad reputation, but it can be fine locked on smaller tires, with a cautious driver.
As for the comparison between LSD and a Locker, driving with a full-time locker on the snow (as in daily driving) is an adventure, to put it mildly. If I didn't use my Jeep for off-roading very much, I'd prefer the LSD. But a locker is sooooo much better for actual off-roading applications. If you're close to stock tire size and not planning on going bigger soon, you could find a used lunchbox locker and throw it in: you wouldn't be out more than about $200, all told.