Rear control arms/balljoint end sit about 3 inches above the tire...is this normal?
 

I have a 91 4-dr. I replaced the rear shocks & control arms w/ ball joints a few years back. it raised the rear end of the car back to original ride height, I believe. It struck me as odd that the of the arms sit so close to the top of the tire now, unless that's normal. I was considering putting a larger wheel/tire package on it, but was concerned that the tires may rub, unless the arms would raise up with the additional 1 or 2 of the larger diameter tire, and stay the same distance away from the tire. Anyone else ever have this scenario? Any input is greatly appreciated.

No, that arm with the balljoint is part of the rear knuckle, so it follows the stub axle & hub at the rear. If the tire tread outside diameter gets 1 inch larger, then 1/2-inch closer to that part of the knuckle.

Normally, you'll put larger wheels but use tires with shorter sidewalls for a similar outside diameter of the tread.

Also pay attention to how close that is to the sidewall. If you want similar diameter but wider tires, you'll have to worry about the offset of the wheels to avoid rubbing the sidewalls.