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Maybe run 37s on 20 inch rims, but you will take a hit off road and your ride will be rough even on 35s. I would run 15” rims if I could fit them over the brakes. Being able to air down to 22 to rock crawl is nice.
from the stock tire to the tire I run is 1/2” difference in sidewall height. I do not know what hit I am taking off road but I like the ride just fine. I started running lower profile tires on a softer suspension back in the 90’s in the dessert and I prefer the performance. If you are a rock crawler yes, you need the side wall, go 37 on an 18 with beadlocks and sliders, if you are just general purpose off roading esp in a powerwagon with the softer suspension 1/2” of sidewall will not make a difference.
the OP question “Pros and Cons???”
I listed a con.
A PW on 20s?? Pavement Princess IMO