I wasnt expecting this to turn into it's own thread but here goes.
My 93 acts pretty much as you describe but it has an auto that shifts it at about 4000, I can feel the engine start to lay over once I pass 3800. I dont know what type of engine mods you have so it's hard to tell what you should be getting but 2500-3500 sounds like a stock power band. Right after I had the transmission mods done to my 92 I found that the engine would lay over at about 4500 I did some head work in the area of the valve springs and some port and polish work which helped it pull past 4500. The addition of a larger throttle body free flowing air cleaner, exhuast and chip really woke the engine up in the 4500-6000 range.
Now on to the why. Other than the fact that I like to tinker with vehicles I have a 120 mile commute to work on 5 different freeway systems and a few side streets. I like to have the upper end kick when merging into 80 mph traffic from a 55-60mph interchange. (Ever been humming along and have a slow poke get in front of you cause they dont have enough power to get out of their own way?) With my present setup I can cruise along at 75-80 running at about 2000-2100 rpm I can floor it at 60 and nail second gear for a solid pull to about 85 which helps a ton in merging situations in a state where turn signals dont mean much and people try to keep you from changing lanes.
The down side. Due to the 3.08 gears and heavier than stock tires off the line performance sucks. Even with all the mods a stock explorer has no problem getting ahead of me from a stand still start, my only chance is to let the engine get into the power band and hope to catch the other ex.
I've never had my truck on a dyno, nor have I taken it down the 1280. Basically I really dont care to chase the numbers of more rear wheel horsepower and 1280 times, all I've done is make my vehicle a little more usefull for my daily drive. I'm also not making any big power claims, no matter what I do to the OHV it's still in a 4000+lb brick that wasnt meant to go fast even though some do through the application of $$$$.
The bottom line that the stock OHV isnt a high reving engine, it can be made to rev out but it takes some work and some $$$$.