I have a V8 Ford school bus and a 5th gen 4 runner with 33s. Nobody is better at coasting than me. I try my best not to use gas or brakes in city traffic or let the RPM go above 2,000. If i could, I would hook a sail up to these trucks and let the wind push them.
I don’t know what size your factory tires are, but assuming 30-31” tall tires that most come with, the 35” tires are ~12% bigger so you add 12% of the mileage you went. 265+12%=296 so you actually went almost 300 miles and should be closer to 17 mpg.
It did rub bad at first but its not so bad now. You will need an aggressive chop, and SPC upper control arms really help since they're adjustable. You can get by without a relocation