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Personally, I wouldn't tow any substantial weight with a lifted truck. Yes, I know that lots of people do and haven't died from it, but I'm a paranoid SOB. The higher your tow vehicle's center of gravity, the greater the mechanical advantage you're giving to the towed vehicle. That said, a drop hitch does reduce that advantage some.
That's a hell of a hitch. I had to get a 5" drop hitch the other day because my 2" drop hitch had my newly acquired boat just about dragging it's as...rear end on the trip back to the house with it.