During my weekly crawl under the Jeep inspection I noticed a fairly large gap between the bottom of the steering gearbox and the pitman arm. Also the nut of the pitman arm is on by just a few threads. Is this normal?
The sector shaft and pitman arm splines are tapered and create an interference fit when the nut is torqued. If the nut is tight and the pitman arm isn't wiggly, it is normal. The lockwasher under the nut looks fully compressed so yours is probably tight.
The torque spec for the nut is, I believe, 185 ft lb. If you put a wrench on it and can't tighten/turn it easily (i.e., with way less than 185 ft lb), it is most likely torqued correctly. The threads have loctite on them. If it turns, it needs a new nut (if you are going by the service manual) or new loctite.
I have read in the forums sporadic reports of sector shaft nuts coming loose. Not that yours looks loose in the photos. It bothers me that there isn't a positive mechanical locking device, like a bent washer to ensure the nut cannot come off even if it was improperly torqued.