You could just do a body lift. Stay away from anything that is a "leveling kit" because they're just re-indexed torsion keys. if you want to raise the front up a little then crank the torsion bars a bit, its free and easy.
Personally, I'd go with a 15" wheel and if you have fender flares on your truck, go 15x10. if you don't have fender flares, go with 15x8. I have 15x8's now because my truck didn't come with fender flares. I swapped my bed and front fenders with someone in NJ who wanted a flareless setup so now I'll be getting 15x10's when I get new tires in the spring.
16" wheels suck mainly because you have to go with metric sizes and most of those are E rated tires which will make your truck ride like a brick. You'll want load range C tires and most of the ones for 15" wheels are load range C.
2004 Vermillion Red 4.0 4x4
3" Body Lift
2" Tuff Country AAL
33x12.5R15 BF Goodrich Mud Terrain KM2 on 15x10 Mickey Thompson Sidebiter II
& lots more