There are alternatives to snorkels that do not require you to cut holes in the fenders. There is an interesting set-up, I think it's on
GO JEEP, that relocates your air intake to the low pressure area at the base of the windshield.
You can add a throttle body spacer too to help with the breathing. Along the same vein, as with most vehicles, less exhaust restriction helps. You do not want to open your exhaust too much though, or you'll lose the back pressure that provides the higher torque from the 4.0. I've read that a 2.5" pipe si the most you'll want to go to, after that it has a negative effect on the torque.
The 4.0 is pretty much bullet-proof, but has known cooling issues.
Do you have a 231 transfer case or a 242 (does it have full-time four wheel drive?)? You can tell from the shift pattern, or you can crawl under and look at the little red tag on the back of the TC. There is also a link in the FAQ to help you determine.
Not knowing what kinda of gas mileage you're getting now, it is hard to say what you can do to improve it, if much of anything. Tire size and gearing will help determine it. I think that Good Burboun told me, once upon a time, that he's getting near 18 mpg on his 31's. My ancient '86, rolling on 33's with 3.73 gears with the 2.8L V6, gets around 12-13 (my max speed is 65 btw....and I do mean
MAX!!!...that's downhill, with the wind, in the draft of an 18-wheeler). DG's '91, 4.0HO, 35's, 4.10's, gets around 10 on the highway.
I think that most people around here, who maintain their XJ's as DD's, get between 15-18, and tire size + gearing seems to be the main difference.
At some point, you're going to have to decide what direction you'll want to take your XJ in. They are extremely capable vehicles, in many areas. As with all things, it comes down to what compromises you're willing to make.