if you want a project then you can definitely do it.
but its not an easy or cheap project.
i will try and break some info down for you:
why it won't work:
that lift thats on it is not a good base at all to start with. you will need to start from scratch. with that lift, which is definitely short arm, your 37s will rub everywhere. even if you 'trim' your 37 will smash into the inner fender; adding more lift on this setup will actually make this worse. (angles get worse on short arms, thus tire gets closer to fender) you need to build a susbstantial suspension to move that axle forward.
your axles, are garbage (all ZJ stock diffs are. SPECIFICALLY for 37s) your gearing will blow, it will be slow as hell and just a pain to drive.
so: how would i suggest your ultimate goal of 37s?
new diffs: either a rear ford 8.8/front D44 or better, go to full D60s front and rear. the bigger diffs will also give you more lift, without really increasing spring heights.
regear them and rebuild them, and lock them. add 35 spline shafts in the rear. and drums. this step will probably cost close to 5k. do you need to do diffs? your call.
suspension. do a full claytons long arm kit, 7", maybe if you really want, add a spacer on it. cut the hell out of everything that gets in the way. honestly, this is a waste to do on stock axles though. 37s will snap stock ZJ axles fairly quickly. you'll also need to redo driveshafts most likely, but you'd have to do this if you put new diffs in it anyways.
it can be done though; its not cheap.
i guess if you wanted 37s under it ASAP, do the claytons kit, add a spacer and go from there. but again............ diffs.
lastly, with 33s, lockers and beadlocks, i/we don't have a lot of issues keeping up with the bigger rigs on 37s and stuff. their rigs are better? yes. but for a fun day of wheeling we can still get'r done.
just more food for thought.
07' JKUR rollin on 35s