Ugh! These threads always turn south. But, I'll put on my flame suit and go ahead and offer an answer.
IMHO 1.25" is all you want to put on your jeep. I don't know for sure how much play there is in the wiring and hoses etc. But when I installed my 1' BL the instructions were to unhook some of the wiring connections to avoid breaking the connections. I'm sure someone knows exactly how much slack there is, but from my experience not much. Also, if you have a standard, I believe your shifter will be that much shorter.
Anyway, I put on my BL for pretty much the same reason you want to. I just wanted my jeep to sit a little taller. From what I've learned on the forum. You begin to run into problems after 3.5" of suspension lift. So, I went about it by putting on 2.5" - 3" of suspension lift, in order to stay clear of too many problems like driveshaft or steering. Then adding the 1" BL. Total 4" of the lift that I wanted. The other plus was the cost. 4" lifts that include everything you need were out of my price range.
All in all, would I rather have a 4" suspension lift? Of course! But I'm happy with my Jeeps ride height. Came out of it cheaper with no issues and kept it simple. If I ever do decide to invest the money to go bigger and get really serious about a hard wheeling Jeep, I'm sure the BL will come off.
To add to the question of how it will look. Not very good with 2" IMHO.
My 1" is only really noticeable in the rear bumper gap. I painted it black but it still does'nt look right. I'd be glad to post of some pics and let you decide for yourself.