Articulation with Max tire size?

Hey guys. I'm new when it comes to suspension. I've read plenty of tire threads and everyone seems concerned with how to jam the biggest tires they can onto their trucks and lifting their trucks I order to do this.

My questions are, am I losing some performance benefits in terms of range of motion by fitting the largest possible tire size (without rubbing) to my truck?

Is there any reason to consider doing a 2" lift with Kings and keeping the stock tire size of 265/70/16? Is there any benefit to that?

Truck is not going to be used for desert racing. Just off roading on the weekends on trails and such, but want to possibly do some more serious rock crawling in the future.