Coilovers in the front coupled with new upper control arms and adjustable camber bolts, and an aftermarket leaf spring packs in the rear, coupled with slightly longer shackles and new rear shocks that can handle the longer articulation and slonger rear brake lines... though you can make the stock brake lines work by unbolting the mounting bracket.
This is the route that I went for a 2 - 2.5" lift. It's not extreme, but it works very, very well. Specifically, the front coilovers allow for the extra weight of my Shrockworks front bumper and winch, while keeping OEM steering geometry and the wheels under the fenders and no rubbing with 33" tires, and allowed me to retain the front sway bar for highway driving. Out back the heavy duty leaf pack allows for extra weight capacity and articulation and bottom out resistance, and the longer shackles allow for maintaining the pinion angle on the driveshaft without having to use shims. Keeping the wheels under the fenders was very important to me, as I have gotten a ticket for that from the state patrol in the past on a Jeep.
Specifically for my Xterra: Radflow 2.5 coilovers and PRG upper control arms in the front, with OEM camber adjustment bolts (no longer available) and the coilovers springs adjusted for a 2 inch lift. In the back I have Alcans...I can't remember exactly how much extra weight capacity I ordered, but I want to say it was with +500lb capacity arched for a little over 1/2" lift, and greasable Daystar 2" lift shackles (no longer available I think) for a 2.5 inch lift total and longer rear shocks from PRG. I went with a total of 2.5 in the back because I knew the springs would settle some, and now my Xterra sits just slightly around 2 1/4 inches in the back when loaded up, and perfectly at 2 inches level with the front when loaded and towing a trailer.
I've been running this setup for many years now and I've been extremely happy with it. It should go without saying that the rear sway bar was removed, but I'm still running the front. The only (minor) issue I've had is that the lift in front puts extra stress on the front swaybar end links. I'm on my third set now with somewhere north of 130K miles.