I'm going to put a couple photos of my setup on the bottom of this reply. It isn't exactly the same, but at least it shows an option if you are going to try to keep your standard universal driveshaft.
If you have the money burning a hole in your pocket consider a CV rear driveshaft. They really are nice, you gain driveshaft clearance because your pinion is clocked up pointed right at your transfer case, and you have no vibration since the CV joint at the transfer case makes your driveshaft have a constant velocity. The stright u-joint at your pinion is clocked so that your driveshaft is inline with your pinion, also making it contant velocity, so you have zero vibrations. That being said it is kind of a money pit, because the driveshaft is a pile of cash, and you could need to swap out or modify your transfer case to get rid of the slip yoke and install a drive flange similar to what you have for your front driveshaft. Sooo, if cash comes your way you could swap in an NP205, or you could keep your 208 and make it a fixed yoke by swapping the output shaft and back half of the case with a Dodge NP208, which was found in a lot of half ton Dodge 4x4's in the 1980's. I know that is a significant cost, but really with a short rig and a lift it is the best. With the short rear driveshaft you end up with such a steep driveshaft angle that the universal joints are near or at the angle limit, possibly even binding when your axle is at full droop. Other problem is that the steeper the driveshaft angle the more it pulls the slip yoke out of the transfer case per inch of droop. Sure, you can lengthen the driveshaft, but with a flexible suspension setup with stock bumpstops you can bottom out the yoke into the transfer case. It may not be as much of as an issue as I am making it up to be, but it will if you ever decide to get a doubler transfer case setup, the transfer case would be even closer to your rear axle. I know of two guys running around in diesel blazers with 203/205 doubler setups with lift, and they both have CV rear drive shafts.
So, this is what I have. I show no mercy to my front fenders, they have been carved up with a die grinder. I run 37" tires on a 3" ish lift (2.5" shackle flip & cut zero rate blocks, with 2.5" lift springs and zero rates pushing my front axle 1" forward). This is with stock driveshafts, but is on an M1008 equivalent. So my rear driveshaft has a much easier life than yours.
The pics show what a zero rate cut to 3 degrees looks like.
Here is a shot showing the driveshaft angle. I could have turned it down a couple more degrees.
