Will the stock 89 wheels fit over the 96 brake upgrade? I don't think so. Do you want to buy new wheels also?
If the steering knuckle is not damanged there is no need to replace it. The bearing may come out in pieces, but it will come out. Check the knuckle for cracks, if there are none you can reuse it.
As for the removeal of the tie rod end, if you do not have "the tool" for removing it, use two hammers. Place one hammer on one side of the joint, and hit the other side of the joint with the other hammer. Smack it good. The force distorts the knuckle where the ball stud goes thru. The end will come out. Try it, you'll like it!
Hitting the tie rod end on the threads is not a good idea. If you are going to hit the end of the tie rod leave the nut on, flat side up, and hit the nut. This keeps the threads from being damaged.
To remove the ball stud from the knuckle use a small bottle jack. Place the jack on the junction of the lower control arm and the stablizer strut.
Place the upper end of the jack against the lip of the inner fender well. The jack pushes down on the lower control arm, and thus the ball joint, and pulls the stud out of the knuckle.
Be sure to remove the "pinch bolt" from the knuckle first.
Remove the bolt that holds the knuckle to the strut last, but I would loosen it while everthing is still together.
From the sound of your bearings it seems you waited a little to long before changing them. You will also need a new hub. Your hub is distorted from the heat and wabbling in the bearing.
You can have a local parts store press out the old bearing and press in the new one. They should be asked to inspect the knuckle for cracks around where the bearing goes, BEFORE they press in a new bearing and hub.
Your other bearing cannot be far behind! Do both sides. rangerj