Auto or Manual for offroading - why?
Here is my explanation to why mud can slip in between your clutch and hurt it when you clutch while under water. First off there is a slit in the bottom of your bellhousing. I am not sure why it is there as there is a breather vent on the top of the tranny. But anyways if you get into water deep enough it can get up into the bellhousing, but you don’t have a problem yet because the clutch is engaged to the fly wheel at the back of the motor and there is no way something could get between them. At this point you are fine even if it is muddy/soupy water because the dirt is in the bellhousing but not messing with anything important, and your clutch is still engaged in moving you. As Soon as you push in the clutch in this condition, the water and dirt and stuff get between the clutch and the flywheel and can chew it up. It really isn’t the water that is the issue, it is the mud. The water might make your clutch slip a little, but it will burn off very quickly. The mud can chew it up. When you go through deep mud/water in a manual, don’t clutch until you are out of it and even then you might want to wait a few seconds as the water drains out of that slot. I have had mine in muddy water and gotten it all in the bellhousing but not affect the clutch. In fact, I have sprayed all of that mud out once I got home.
Long post, but here is a trick to cleaning it out if it is necessary. You might want to do this if you go through mud a whole lot as the dirt could conceivably rattle around and get in between your clutch. Pull parking brake, put transfer case in N, and put manual in any gear. Crank it and let the clutch out, now get under there with the water hose and spray up into the slit. The reason you might want to keep it running is that it will help agitate the dirt inside the bellhousing.
Long post, but here is a trick to cleaning it out if it is necessary. You might want to do this if you go through mud a whole lot as the dirt could conceivably rattle around and get in between your clutch. Pull parking brake, put transfer case in N, and put manual in any gear. Crank it and let the clutch out, now get under there with the water hose and spray up into the slit. The reason you might want to keep it running is that it will help agitate the dirt inside the bellhousing.
Why? What changes?
I just drove my dad's '01 TJ with an Auto out in AZ and I have to say I really liked not thinking about the clutch. I have always wondered if you feel you burn up the clutch while off roading vs the auto.
Actually, it's not BS at all. There have been several members of this forum that have clutched while in deep mud, and ended up sucking the muck into their tranny... which in all but one or two cases was not covered under warranty. 
This isn't to say that ALL manuals will instantly roll over and die in mud, but it IS a known engineering issue/defect.
I haven't seen any reports of similar with automatic transmissions. But don't feel bad: we auto owners get to watch out for the possibility that our trans fluid will overflow into the engine compartment and cause a fire that'll burn the JK to the ground.

This isn't to say that ALL manuals will instantly roll over and die in mud, but it IS a known engineering issue/defect.
I haven't seen any reports of similar with automatic transmissions. But don't feel bad: we auto owners get to watch out for the possibility that our trans fluid will overflow into the engine compartment and cause a fire that'll burn the JK to the ground.
I say go with a manual even as a DD i loved having a manual truck and i love the control off road
unless you live in a city with traffic then auto is the way to go
Previous to my JK, I have always wheeled with standards.... (47 Willey's, 85 CJ7, 92 YJ, 02 TJ) Having said that, I love my auto in the JK. I still want to regear to 5:13's as going down hills I have to ride my brakes (4:10's with 35's) but I like not having to worry about shifting mid climb etc.



