Great questions, ok so first this is my daily driver, so I don't wanna go too crazy with the power.
What I want to do is be able to accelerate better, burn a little bit of rubber every now and then and have a decent amount of HP for this rig.
I don't do any towing, but you never know I might need to one day.
I'm sorry I don't have all my cards in order for all this, but thats why I posted here, thank y'all.
my dumbass moment has arrived, hahaha, but like I said that's why I'm here, so I can get knowledge and not **** this truck up.
So would my best bet be a engine rebuild or remanufactured L59? until I can do the same to the tranny and rear end.
I'm ready for it, my wallet is not though.
Then don't waste your money. If you must spend, do so wisely, get more bang for your buck.
Your SPID sticker says GU6.
Unfortunately, GU6 is 3.42, which sucks sweaty arse.
You could very easily upgrade that RWD axle from 3.42, to 4.10, AND add a torque sensing limited slip differential, for UNDER $1900.
(That $3800 engine - before installation - could be replicated or even improved upon, for $2850 installed, by a clever shopper with time on his side.)
Back to topic:
4.10 would actually be a good investment, as your metro / urban stop'n'go MpG would actually improve.
4.10 MIGHT cost 2 - 4 highway MpG, depending on how you drive it, but it might be worth the extra SMILES per gallon to you.
My Tahoe has GT4 - that's 3.73 - and I'm sorely dissatisfied; I want 4.10 myself, as soon as I can afford it.
If I had your XL, just before the pcm retune that you should also do, I'd've corrected GM's mistake of 3.42, and upgraded to 4.10.