definitely go street with the plans.. being 18 id keep it on the inexpensive side and get some SRT springs, some bilstein HDs, some swaybars and call it a day on the suspension. maybe go HIDs or HIRs in the lows, HIDs in the fogs, throw some tint on the tails and call it a day on the appearance lol.
wheels and tires and suspenion will set this thing off, and greatly improve the overall jeep. so its 2wd, make it a solid pavement pounder.
although going offroad isnt out of the question- i do believe there is someone who does wheel their 2wd with just a locker in the rear.