I bet if you could get a aftermarket controller to lock up the convertor in some of the lower gears, you could overcome that. Plus leave it locked in for engine braking when towing.
Great idea on paper. I only see one hiccup on it.
Before I get into that I do want to tell you how much I admire your insight into most every discussion you participate in.
Pretty often I find myself sitting up and taking notice when you make me want to say out loud..."Dang ! Why didn't I think of that !?"
Moving on to the E4OD...the early units had the input shaft splined into an aluminum planetary in the overdrive section of the unit. (The E4OD is basically a wide-ratio C-6 with an overdrive unit in front of it.)
I foresee a stripped planetary in the future of a unit that has not had the later upgrade...where they changed the planetary carrier to steel and you have an upgraded input shaft that has to match.
Other than that, sounds like a good idea to get a little more 'oompf' outta the driveline. Especially on the engine braking on a downhill. Expect a bit more harshness when the convertor is locked up.
As a matter of fact...it might be a good idea to have a custom convertor built for that. Tell your convertor builder what you are going to do with it. The factory convertor probably was not built for the harshness you are going to get when you couple a diesel with a manual-control lockup. Especially in the lower gears.
Fwiw, I had a 6.2L diesel suburban with 3spd auto and 4.10 gears. 12 mpg.
Years ago I had a customer with a Suburban that had a 6.2 and the 700R4. He had me build the trans. This was before any (decent) shift kit was available for it. I had to pull out a few tricks to get it to work right because a few people were getting fed up with them and changing them out with THM 350's.
Anyway, I can't remember what gear ratio he had (probably not a 4.10, more like a 3.00 or so.) but he reported back that he was getting over 20 MPG on the highway.
That was the motivation to fix the trans on that one...decent fuel mileage at a time when diesel was reasonable.
I did the axle ratio and transmission. 3.21 axle swap and 4spd manual. I had 17mpg after that.
I'll bet that a 700R4 swap would have got you into the 20's. I would have liked to see that.
Anyway, wishing you all a great weekend. Thanks for the chance to sound off.
Take care,
X