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Wow, my suburban has 32"x15 and they look huge compared to these stock tires. - so are you saying my 3rd gen wheel well is designed for 31"+?

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The illusion is also because one is on a 15" rim and the other on a 16". One inch is "hidden" in the rim. A stock size on the 3rd Gen is 31". With a bit of coaxing 32"s fit. With a lot, 33"s. Go nuts and 35"s somehow fit in there with lots of lift and pounding/cutting. 33"s are pretty heavy compared to the thin wall stock 31"s. That mass, wind resistance and open tread greatly affect mileage.