It sucks having your brand new Jeep wrecked. And the resale value will suffer a little. However replacing the frame isn't that big of a deal. It takes some time to do, but it's just nuts and bolts. Your Jeep is 100% fine now. I know it might not feel like it, but it is.
Now keep enjoying...
While my Jeep is in the shop, I had the tech look to see if the software update (70F I think it's called, on the TSB) was done after they did the steering box a few months ago. It was not done. I had to walk the tech (the shop foreman of all people) through the TSB step by step and stood over...
The service department did a fluid change and told me it was fixed. Of course I knew it wouldn't be, but I spent $30.00 on the Uber ride to get back to the dealer. Dealer had it 2 weeks.
And yeah, it wasn't fixed. I could still hear it knocking. The technician couldn't hear it.
35's are a good size. You can pick up Rubicon takeoffs for a song. They are are only 33's but they will drive nice. You'd really need to delete the lift with 35's or less though. It's going to look way over-lifted.
You won't cause any damage by driving on 37's if you're staying on pavement. You talk about ride quality, which is a legit concern. What kind of lift does it have? That can impact your ride quality as well as those... very urban wheels/tire combo.
100% this. There are 2 types of JL's. Those with fixed steering, and those with owners who don't know they have bad steering.
Here is the latest TSB. Take it to your dealer, complain about wandering steering and they will fix it.