Let me add a couple notes on drive line angles.
If the U Joint angles on a drive shaft are not strait (they never are on an off road vehicle) then they actually speed up and slow down on each rotation. This can produce a bad vibration. But a drive shaft is made so the vibration of the front U Joint cancels the vibration of the rear U Joint. This works great if the the angle of the front U Joint to match the rear. This is how every manufacture makes vehicles.
But this only works at small drive line angles. The UJoints don't like too much angle so when you lift your jeep you may have to angle the rear differential upward. This can be done with angled shims at the leaf springs. Then to keep both u Joint angles the same you can lower your TCase. If the drive line angles get to be too much you should then go to double cardan joint or a CV joint at the front of the drive shaft. A double cardan joint is 2 U Joints together.
These 2 U Joints cancel each others vibrations. In that case the U Joint at the differential should not have any angle. To keep it from vibrating it should be strait like this.
Now you can see how the pinion is much higher than the manufacturer intended.
That vent reservoir is a good idea. Thanks for the tip.