Simple answer yes and yes.
I have two sets of tires - on the 7.5 rim I dont care much for the 35" AT tire - it ends up with a lot more sidewall deflection. The increased slip angle
makes at speed turns feel lazy (under-steered entry) to me. Not enough that I've taken em off yet (total body roll is still not trying to overcome the tire enough to worry me). And honestly as my on road set - i've never aired down below 23 - my cold PSi is 28 - at 30 cold it grows to 34 and the pyrometer shows me hot center.
But my off road set (and yes I know its a different tire but they match load rate) is 35 PitBulls on 9" and the feel is a ton more responsive (less mush when going into a curve at 65) to me.
Yes a larger diameter tire changes your final gear ratio so engine torque is not being multiplied at the same rates. It will feel more underpowered at the high demand times - but carry more momentum in the cruise and scrub velocity faster in decel. SO as you loose acceleration multiplication - make it up by driving style that uses momentum more, or regear. I LOVE gearing and its feel. SO for me 35 and 5.13 was done at same time - with a plan for 33" on 7.5 road set (my driving style is to hit both ends - accelerate hard carry momentum and use the brake hard in an automatic - yes I go through brakes in about 80% of fleet average miles lower 20 percentile) - but that changed when I got five good Duratrac 35s free...
J Wm Bishop EA, ASADE
The wagon should, of course, be as light as possible, but strength should not be sacrificed to lightness, for on any but the regularly traveled roads, the wagon will get many a hard knock