You will be happy. In my 89 IDI turbo 5 spd - I went from 16.5 mpg to 20.5 mpg unladen. Towing small stuff was not an issue - watch your EGTs and downshift over 1000* (if your gauge is after the turbo, 1250* if before the turbo), keep your boost off of the max. When I hooked on to my gooseneck and back-hoe I was grossing 26K. If I had to start on an incline, I would start in the Low Range of the transfer case. Go thru all 5, put the trans and transfer case in N, put the transfer case in High, then the transmission in 2nd and go thru them again. Eventually the transmission got tired and I had it rebuilt with gasoline gears. This gave me a lower first and second and I don't need to use the Low range anymore.
I have an independent front axle with 3.54s in it. $100 come and get it. I am about 600 miles from Spokane