I had this same dilemma about a year ago. 2003 Yukon XL w/ 3.73 gears and the 4L65e tranny. I live near Denver and Fat Konnie was a slug when I headed into the mountains...or drove up anything steeper than a 1% incline.
So I bought a rebuilt LQ4 with upgraded Comp Cam roller setup, upgraded springs and trunion bearings, and decked 241 heads with appropriately sized gaskets. I replaced some wear items like water pump, thermostat, belts, spark plugs, wires and threw on a set of speed engineering long tubes and Y pipe. I hit up Black Bear for a tune and hit the road.
Now she runs like a spotted ape and will pass anything but a gas station. BB told me I'd have to run premium fuel with his tune, especially at altitude and having some engine mods. So now I get to pay more for gas and I get gas mileage (11-13mpg)! She's not my daily driver so that should play into your decision.
Bottom line...is it worth it? !!!YES!!! Now Fat Konnie has plenty of power in the mountains and can even downshift and pass people on the interstate. Will I blow up my tranny? Maybe. But GM put the 4L65E behind plenty of 6.0 motors so I'll report back if it grenades like a G80.
DO IT!