I wouldn't recommend a side dump exhaust on a trail rig. The problem is the pipe has to run under the frame rail, and becomes the lowest point to hit/crush shut if you slide over a rock.
The side-dump works on the race rigs because they never see rocks or obstacles. It's basically trail running: Fast trail running, but trail running non-the-less. We have a side-dump on the 7118 Comanche, here's a pic, (thumbnail is a link to full size photo)

The dents you can see in the pipe are caused by rocks being thrown up from the front tires. We've beat this truck so hard the anti-sway bar links got pushed through the inner fenders, and that side pipe never got touched. On the other hand, looking at the frame rails on my XJ, anything hanging down that far would have been crushed flat or ripped off.
I'd say keep a cat in the system, and a decent muffler if it's at all road legal. Saying"it's a trail rig only", doesn't mean squat when it's licensed, registered, and insured for street use.
On back pressure: No motor NEEDS back pressure, but all automotive motors are tuned to run with a certain amount of back pressure. due to emissions, sound levels, etc. equipment required from the factory creates back pressure. The motor is tuned to run as efficiently as possible with it. Things like cam lift/overlap, port size/design, are speced to match.
Radically reducing exhaust back pressure
while making no other changes may(OK, probably will) cause a loss of power at lower RPM. Yeah if you're building a high reving motor, big cam, lot of custom/aftermarket internals, an open exhaust is going to help, at which point I have to ask: for a "trail rig"? I don't think I've ever seen 4Krpm in my XJ off highway, and I don't think even the 7118 truck has gotten above 5500.