I've gotten 23-24 mpg at 60mph out of my mom's almost identical 4.0 WJ (hers has Quadra-drive and 3.73 gears). My friend has one also (standard 3.55 gearing) and has pulled just about 25 out of it (before he lifted it).
Your city mileage is actually pretty good. In what I'd consider city, I've never seen more than 14 or so out of one of those. For what the vehicle is, and how capable they are off-road, etc, the mpg isn't too bad. Of course, compared to an econobox, it still sucks.
Drafting helps greatly on the highway with these, being that the aerodynamics are pretty bad. According to the instant mpg display on my mom's, drafting a semi about 70-80 feet back at 65mph is worth 4 - 5 mpg gain. Unfortunately, my V8 one only sees 2 mpg or so from this, as it's got a lot more engine, and the gearing isn't any taller, so it's already below the efficient part of its load curve.
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Call me crazy, but I actually try for mpg with this Jeep:
Typical driving: Back in Rochester for school, driving is 60 - 70% city
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