I pretty much use my Jeep as a beater right now. I had to replace a transmission and the cat converters, but other than that and a couple of tune-ups, it has been one of the most solid vehicles I've ever owned. I treat it like total dog#### and it holds up very well. Getting rid of my 350Z in favor of a 2500 HD, so I might be cleaning up the Jeep because eventhough it sucks the gas, I'm going to go out on a limb and assume that it'll be better than the truck.
I'd look for an un-modded Sport. I haven't run the sites or anything, but I'm sure they're out there. Wranglers are probably the most popular vehicle in B'ham, so I may be a little spoiled in being able to judge what is available elsewhere.
If you get something with a lift already installed and considering you're thinking smallish, I'd look for a Rancho 9000 or go with that once you purchase. I think mine is a 3" lift, but not sure. It's still solid as hell and 8 years old.
Chrome looks good, but I'd avoid it. I'm probably going to replace my brush guard/nerf bars soon.
If you're looking to add a sub, there's a couple of center console models out there... I'd check the Jeep Essential catalog before buying a Jeep because some of those aren't available for certain models. There's one I would've already purchased long ago, but it's not available for a 97. I'm not really a sub guy, but doing 70 down the interstate makes the factory stereo set-up pretty much useless, especially with the top off.
I wish I had a picture of my buddy's Jeep. I really haven't done much to mine, but his is ridiculous. 04 or so model. 6-8" lift. 36's, I think. Brush guard that comes up over the hood. Full spare with the full off road accesory package (jack, gas cans, etc.). It's a beautiful Jeep, and cruising around Hawaii at the moment.
Oh, if you go the route of replacing the carpet with a spray in liner, there's a product out there that works as insulation as well. I don't remember the name, but this is what you want. You'd be surprised how much heat you'll get from the road if you just go with Rhinoliner or some of the others.
Not to knock the older models, but I'd get a 97 or newer if I were going to use it as a primary vehicle.
Edit: I've got a Seadoo, as does another friend. We've launched those things in some of the craziest places. There was a washed out ramp near a friends place at the lake we went to this weekend with probably a 2-3' drop. The Jeep didn't even blink pulling my 2 seater and my friend's brand new RXT over the drop off. My ski isn't that big, but his is basically a boat.