Favorite place? Baja!
Baja has to be the best place in the world to 'wheel. Why?
Sand:
In San Felipe, you have miles and miles of sand dunes, and the locals drive sandrails into town to buy groceries, or go to the bar. People drive their sandrails to the different towns up and down the peninsula between places like San Felipe, Puertecitos, Gonzaga Bay, and Bay of L.A. - heck, you can even *race* your sandrail in the Baja 250, 500, or 1000 - as long as it passes inspection.
Mud:
With estuaries filling with water - making tidal flats, you have more than enough mud to fling around your rig. Sometimes hurricanes tear up the landscape, giving off more mud than can be driven without damaging your rig. - It's all about moderation...
Rock:
The road from Mike's Sky Ranch to Melling Ranch is pure rockcrawling - complete with steep drop offs to your left, and views of the Gulf of California below and pine trees above. The Jeep Jamboree will be traveling this trail in the next couple of months according to an article I read in 4WD&Sport Utility... Also, there's Matomi Canyon - it's pretty extreme in places. Also, there's the fun but mild stuff leading to Guadalupe Canyon - the world's only 4WD campground where you have to rockcrawl to some of the campspaces - no joke!
Racing:
The Baja 1000 is the ultimate 4WD race. Although the trophy trucks run 2WD rigs, sometimes you'll need 4WD in some sections that see plenty of rain - especially up near Ensenada/Ojos Negros where both rain and snowfall can alter the racecourse.
Family 4 Wheeling:
A trip to Cabo in your own rig can be done with the whole family. I drove my Ranger to the Sierra San Juan's over Christmas break, and I had a ball. The dirt road leading to Laguna San Ignacio was rough, but the fresh lobster and first-class whale watching was priceless.
If you don't believe me, check out the latest article written by EARTHROAMER as he takes his Dodge Ram through the Baja Outback. Sure, he's pretty green as far as Baja travel goes, and he can't speak a word of Spanish to save his gringo-butt, but he shows how the roads down south can damage and tear up a high-dollar rig like EARTHROAMER...