It probably goes without saying, but don't forget when you go to a larger oil filter you need to use more oil. I started using the Purolator one mentioned and I now take an additional half quart of oil. I'm also able to go longer between oil changes. Simply thought I'd make mention of that, because undoubtedly somebody will read this and want to use a larger filter with the same capacity oil as the smaller filter.
No worries Cottontail, I know what you mean. I installed a by-pass filter on my Cummins and increased the oil capacity from a 12 quart system to a 14 quart system. There are people who think it's still a 12 quart capacity.
Just to be clear, the picture above is a 2 micron by-pass filter. It's the second filter on the engine. In the case of the Cherokee, a larger full flow filter would increase the overall capacity. There's no harm when running a larger filter. If anything, the larger filter media would flow better.