It will work IF you do not plan on cycling the suspension through its range of motion. At droop the drive-shaft will be fully extended and pulling apart the slip-shaft. The amount of useable slip-shaft for torque transfer is also greatly reduced.
Lifting 5" usually requires the front axle to be moved forward to center the wheels. Loosing more effective length of the drive-shaft.
Grab a ZJ shaft and have no more worries. They are almost 33". Compared to 31" for the XJ.
Or, just wheel it until something gives...