I have a 95 Wrangler SE similar to what you do. I also have the front tube bumpers. The previous owner had set it up for flat towing using a solid Reese-style towbar. The tow "tabs" (Reese style) were welded to a heavy piece of 2"X3" angle iron, and then drilled out and bolted to the frame above the bumper connection. It is very solid, and with that setup no drop hitch is required to keep the towbar parallel to the ground.
As for lights, I have a set of the magnetic ones that stick pretty well to either our YJ or JK. No splicing or diodes needed. It is kinda' tricky at first finding the sweet spot between "locked" and "accessory" where the power is off and steering wheel unlocked.