I decided to go ahead and do the pinch weld cut and bend mod on my 06 WK this morning. To my surprise, it wasnt hard at all and only took about 2 hours. I had been kinda up in the air about it, but i got tired of the tires rubbing. It has a 2'' lift on it already and right now I've got 32s on it, but with the pinch weld done I believe I can clear bigger tires.
Pretty simple procedure really; I decided to just cut the plastic fender liner rather than take it out and remold it. Only cut out just enough to work on the weld. I cut liner straight down along the back side of the weld, enabling me to cut and fold the weld over, pinning the liner up rather than screwing it to the back of the fender. After all that was done, I just roughed the metal surface and coated it with rubberized undercoating from a spraycan to keep it from rusting. It turned out pretty good I reckon.
I definitely recommend doing it if you are rubbing and dont want to add more lift. Its cheap and easy.
I used a razor knife on the liner, power drill with a cutting wheel, pair of channel locks (to bend tabs over before hammering), a hammer, and the spray coating.