Not too high, not too low (arguably)   

I've set up my 80 for 4WD touring and harder weekend trips, so I've chosen a setup I thought would suit both.  Basically it's high enough to fit larger wheels, but not too much more. The resulting height is about 3 inches above standard.  2" from the suspension and 1" from the larger 33" tyres.  It's enough to tackle all but stuff I'd call extreme.

Below are the original and 'improved' ride heights.

 This set up seems to provide pretty good wheel travel off road with the on road handling of a wombat.  It's hard to comment though because I haven't driven many other 80't to compare with.  I don't think I'd want them any softer at my vehicle weight of about 2600kg unloaded.  For pure touring without really difficult terrain they could be a little stiffer, so long as there weren't too many corrugations.

I find it's the under slung components like diff's and shock mounts, that hang me up as often as lack of body clearance, so raising the body higher with a suspension or body lift would have limited benefit without fitting larger tyres as well.  I find the 33" tyres are fine for my use and don't compromise torque, going any larger is getting pretty serious and starts causing issues with gear ratio's and lack of toque, handling etc.

I use Koni shocks which are oil only, no gas.  I don't have the experience with shocks to explain whey they should be any better than gas shocks, but I know lots of 4WDer's swear by them.   I'll have to look into this one.

Other ramblings.....

Before deciding what height to go, you should consider the legal implications, what future additions you'll make such as adding heavy bull bars, how stiff you want the springs, and what compromise you're prepared to make between handling characteristics, side slope stability, and clearance.

ADR's.....

IWhy I went with Koni's.

I'm not a shock expert, and don't hang around competitions and the like, so don't have the experince to back me up, but these are my thoughts.  1.  Koni has a good reputation.  2. They are serviceable, so when they're eventually zonked, take them back for refurbishment at relatively low cost.  3. No gas, oil only.  I'm told that shocks with gas and foam construction can become permantly damaged if they overheat, and on corrugations they will.  4.  They're adjustable, not easily, as they need to be removed, but at least you can adjust for wear.  4. I got a set with larger diameter housing for better cooling to help avoid shock fade and prolong life.

Warning - changing springs is dangerous and should be done with someone experienced on hand.  So many things can go wrong.  On an 80 they're easy to change, but be warned there is danger involved with this kind of work.  Have a decent set of heavy duty spring compressors available a jack or two, some stands and wheels chocked.   I'll leave it at that.