That is a perfect explanation of what is wrong with the Falken Wild Peaks by my observation as well! Totally gone at "half" treadwear.The Falkens are a heavy-duty street tire - their grooves/sipes only go about half way down the tread blocks so by the time they're half worn, they're a slick with 4 lateral grooves.
I have Wrangler Duratracs on my Jeep and have had the same issue with needing frequent balancing, although treadwear has been exceptionally good compared to other tires I've run over the years. I"m not sure what I'll run next on the Jeep, but the Hankook MT or Cooper STT are two of my primary considerations.
My Xterra is on its second set of Hankook Dynapro ATM's, and they have been great tires on and off road. The off road traction surprises me, especially in mud, as the tread is not very aggressive.
I'd had quite a few sets of BFG A/T's over the years (not in the past 10 years or so), and while I felt they were a decent on road tire, I was not impressed with off road traction in rocks or mud at all. I moved to an aggressive mud tire on all my 4wd's other than the Xterra since then.