Wow! Thanks for all the replies everybody! So much information!
To elaborate a little bit, I don't plan on changing the wheels size, I will probably just keep it stock (265) or what it's at now (285). I'm considering going back to stock so that I have a little less tire resistance on the road. We don't really do much off-roading, but it has happened so I want tires that are capable but not polarized to just off-roading with terrible road manners. In other words, the compromise that CapriRacer was talking about is going to error on the side of on-road specs.
As far as a daily driver, it's a wee bit complicated. Right now it is a DD, as my 4runner is being rebuilt, my gf is using my Corolla and I don't actually have the Escape anymore. When I get my 4Runner back, the truck will go back to being my mom's daily driver, however, she doesn't leave the house most days so it will be a semi-retired vehicle just like her.
It's definitely a Z71.
At this point, the hardest part is convincing her that looks isn't everything and that the BFG AT is not necessary, just because it "looks" cool or tough. I'm thinking I am going to go with the Michelin LTX. It has a really high mileage warranty and reviews say it has great wet and snow handling. The most offroad the truck will see (more than likely) is snow, so it should work well for what we need.