That's where the tierod connects to the draglink, I've got RE 5.5" coils on mine and it doesn't hit there. A drop pitman arm should remedy that, but you want to make sure that with the drop pitman arm that your draglink and track bar are still parallel.
Nice lookin jeep, the TSL Radial is a good tire but the 33"x12.5" could definately benefit from some grooving. The two center bars that run the circumference of the tire are almost solid, save for some slight siping. This makes for poor traction when offroad, and onroad in slick conditions. I added 1/4" grooves to mine where the sipes are and it made it more aggressive, like the 32"x10.5" TSL Radial.