Grigg,
I agree with your first point, but I'm pretty confident that the increased diameter of the 19.5 inch rim compared to a 16 inch rim will accommodate all brake, steering components with the spacer idea I had in mind.

I'm not sure I understand your second point to consider. If you check out the Dana 60 pictures at http://www.pirate4x4.com/tech/billavista/60_front/index.html
all of these examples show the king pin to be completely on the inside of the tire... Are we talking about two different things?

Jon