I run this size in the KM2's and they are great. Works actually good on the freeway because of the higher size compensates for the too-low 6th gear in the manual transmission.
Also since a narrower tire has a smaller contact patch, you will have much greater friction than the same tire size that is wider.
Plus you can fit a 255/85r16 tire on a small easy to do lift with no cutting/folding etc. No rubbing.
You have a very large sidewall in comparison to absorb rocks, less rotating mass, and all kinds of advantages to off-road traction.
The KM2's are actually -very- quiet as well on the road (at least for a mud terrain, quieter than other all-terrain's ive run in the past) and seem to be very tough. I've crawled up some pretty crappy places with em and they did fantastic in mud, snow, and hardpack.
EDIT: Agreed I also think they look pretty bad-ass. Tall and skinny has a certain military vibe to it. You'll notice every military truck out there NEVER uses wide tires, always tall and skinny. And those guys -need- their vehicles to perform haha.
Here is a better shot of the tires.