I went with this size of tire because:

a. largest commonly available size in thinnest commonly available width
b. thinner tires cut through snow more easily and resist hydroplaning better than wider tires
c. 16" rims smallest rims that fit an 04 DC due to brake caliper size on front
d. offer additional inch of axle clearance from ground, making harder to high center or "snow plow" in deep snow
e. did not need any back spacing plates and same lug studs will work (have enough threads in the nut for a secure mount)
f. tires were well rated on tirerack.
g. larger tires reduce rear wheel torque (effectively higher gearing) making them less likely to break away on snow and ice. This effect is partially negated by the extra power the engine can produce sucking in colder, denser air in the winter time keeping performance about neutral
h. i needed a setup that would get me through most any kind of winter weather on a three hour drive between Missouri and Kansas.

These Blizzacks aren't exactly "pizza cutters" compared to the stock.

Acorn style (smaller) use a tapered mating surface and provide some wheel centering on brake rotor/drum. Sometimes called lug-centric.

No rubbing on mud flaps.

No rubbing on fender well.

Plenty of room even with taller tires because they are skinnier for winter performance.

You can see how wider tires get you into trouble without aftermarket rims with more backspacing or a spacer kit.

Kinda' makes the OEM setup look a little small!

Other side, different angle.

Winters on front, stocks on rear.

Nothing fancy, but I'm saving the cash I would have spent on winter rims I only use for 3 months for a nicer spring/summer/fall package.

a. speedometer reads about 5% lower than actual speed
b. larger diameter resulted in somewhat lower torque around town but can still tow a light trailer on the interstate without a lot of downshifting out of overdrive
c. cornering is decent for a taller, thinner tire if you keep the pressure up. The grip is actually better than the OEM tires
d. final pressure I settled on was between 45-60 psi front and rear. Max rating is 80 psi on these load range E tires. Can always pump them up and feel confident knowing the tires can handle any load and more than the truck can carry. Any setting much lower than 45 psi and the tall sidewalls flex excessively causing an unsure feeling in crosswinds or during cornering but does provide a smoother ride around town
e. saw a reduction in gas mileage average city/hiway from about 16.8 down to 14 to 15. This is with the extra 5% factor for the speedometer being off. Don't know if it's due only to the tires or also the colder, winter weather we've been having. It seems to jump around more now than it did this fall sometimes going as low as the high 13s and up over 15 and once over 16.
f. and snow? well, our biggest snowfall was only 4" so far (darn global warming!) but the truck did awesome. In 4x4 it was off the line like a champ at lights and around town felt very secure once I got used to driving it. Antilock braking worked well and the truck stopped predictably and consistently. Am anxious to try it out on some deeper stuff to see how she does
g. very low road noise on most road surfaces. Rocks do get stuck in the treads of these tires and they will get thrown out randomly when driving. Not a big deal once you figure out what's going on.

Summary: If you've been thinking about winter tires, this is a good way to go.

I picked up the rims with ornaments for around $215 at a salvage yard including tax. I put about 30 dollars in sparkle silver paint and clear coat on them. They were kind of scratched up but not in bad shape. The lug nuts cost about $10 at the local auto store. The tires were about $630 delivered from tirerack.com and the mounting and balancing on Hunter road force unit with high pressure valve stems was $75.

So, for under a grand, you can have a solid winter tire setup that should last you through several winter seasons no problem. I hope this helps someone thinking about a winter setup to evaluate what they want to do.

UPDATE 2017: I know it's hard to believe, but I have used these winter tires for 11 seasons now! They are just getting to the ice traction wear bars. I ran them every winter season from Thanksgiving to St. Patrick's Day and stored them inside after cleaning them. That works out to about $90 a year to have quality winter tires! I would definitely buy these Blizzacks again and will probably do so this Spring and retire these old ones. Since I already have the rims and lug nuts, the only cost will be the tires and mounting/balancing.