Welcome from Utah, I have a 2002 Yukon Denali that i use off road as well. I have lift keys in the front and Z71 springs in the rear with the autoride shocks replaced with Procomp shocks. I did add a 1" jounce bumper extension to the front to eliminate the wobble affect caused by the torsion lift. The jounce stops are supposed to be in contact with the lower control arm and act a progressive spring to support the torsion bar suspension system.
I have taken Yukon through many trails including Fins and Things at Moab with no issues at all. I have also been on some "Jeep" trails that where quite steep and technical as well. My observations on using my rig in these situations has been overall positive. My only downside is that the AWD transfer case is single speed, meaning we have no LO gear. When I have had to climb a shelf or a steep incline, my engine has had to do all of the work with out the help of low gears. I have been in one situation where i had the Yukon in a torque stall where i did not have enough power to move over the obstacle (traction was not an issue), where if i had a two speed transfer case, i would have been able to clear it with out issue.
Speaking of traction, our G80 rear locking differential provides torque biasing for the rear so that if one wheel losses traction, the other wheel will receive torque to help get out of the situation, but you have to be gentle with it, too much torque too quick and it will break. My 2002 has the NVP-149 AWD transfer case that has a viscous coupling that provides torque biasing to my front wheels which can send up to 100% of the torque to the front wheels if both rear wheels loose traction, I have no traction control. The 2003 uses a different transfer case (BW4481) that works in conjunction with the traction control (ABS Brake system) to provide the same torque bias to the front wheels. I am not sure how the traction control system would hold up under extended extreme situations.
I hop you enjoy taking your rig to the outdoors and exploring, they work well in most situations you will encounter but they are not a purpose built off road machine to tackle trails like the Rubicon and such.