OK, I like Greg's idea with the Mercedes OM617.
Goal - 30MPG!
Where can I get one?
http://en.wikipedia.org/wiki/Mercedes-Benz_OM617_engine
You would want a later model turbo engine. They are easily capable of putting out 200 ft/lbs with some minor tweaks. I think 30 MPG is somewhat optimistic, but with the right drivetrain, gearing and smaller tires, it's possible.
I think that 5.3 would get you closer to 30 then 20. My old TPI 350 got 20 mpg with 35's and 4.88's. And while that 5.3 engine is not super rare in a Jeep, it is rare enough to get you tons of looks at a show and get lots of points for uniqueness.
You really think a 5.3 would get close to 30 MPG? I doubt it... 22 at the most, IMO. The most fuel efficient 2WD Silverado only gets 15 city/22 highway. And a CJ7 has the aerodynamic stylings of a cinder block, which isn't going to help.
Not sure why leaf springs are suggested for a soft ride? I have alcans on the rear of my fronty and front coilovers and they are still leaf springs.
I think coilovers or TJ coil type suspension for a soft ride.
I think diesel for fuel mileage. I wouldn't want my daughter to have a high horsepower jeep cause if she hot rodded it and sped around corners too fast then you know...
But i wonder how much the cost is on finding a diesel and all that...maybe pretty high. Is cost an issue for you?
Leafs can ride very well, just because yours may not doesn't automatically mean all leafs ride like poo. My '87 4Runner had a quality set of All Pro 3" leafs front & rear... both pairs of leafs were longer than stock springs and had taller shackles and I was blown away with how well that thing rode. It went down the road and freeway very well, it was a treat on long trips.
Alcans are awesome springs, but they can only build springs with the information you provide them. If your info is wrong or your rig is setup for trail use different from how it was when you gave them the info for your spring pack, then I could understand why you're not pleased. I've ridden in a couple vehicles with Alcans and have been very impressed.
Coil springs have the potential to ride well, but they aren't even half of the equation. Long, close to horizontal control arms are what make the ride, not the coils themselves. There are plenty of TJ's with coils out there with stock or control arms and tall lifts that ride like hell.
Diesels can be expensive, but so are most other other engine swaps.