Steve, I could be wrong but I think I've read somewhere that 5.29's and 35's are closer to stock ratio than 4.88's and 35's. In my 'runner I have 5.29's and 35's and the speedo is EXACTLY correct driving down the road. That tells me that I'm at my stock R&P to tire size ratio. When it comes down to it, you'll probably get a little better mileage on the freeway going 60mph with 4.88's, but everywhere else (around town, accelerating) the 5.29's will give you better mpg's because your engine will not have to work as hard to push the 35's. Personally, I would stick with the 5.29's. 4.88's are good for 33's but IMO, not quite low enough for 35's.
side note: my '86 runner with 22re gets about 20 mpgs w/ 5.29's and 35's and auto tranny.