I've been driving all kinda of trucks for almost 10 years. Yes, I tow with my ZF in 5th gear, but that also depends on teh load, speed and road conditions. If I have a car on the back, and I am on a flat highway, overdrive it is.
If I got a dump trailer with 10 000 pounds in it, 4th gear and never over 55MPH. You don't want to get too hyper with any type of load that is heavier than the towing vehicle...your truck.
Now. As far as lugging an engine. You can, but I DO NOT reccomend it with an IDI. I lug the BIG engines at work, because they are DESIGNED to do that...they have a torque rise that is phenomenal. In an ISX for example, as you are running up the highway at 1700 RPM, and you climb a hill...your torque will become greater as the RPM decreases...horsepower don't move the truck up the hill....torque does at this point.
These IDI engines need to spin fast to work efficiently. Run her off teh govenor all day should you wish, it won't harm it. But it won't do anything for mileage. If I am climbing a hill with my truck...no less than 1600 or so, but even at 1600 I am not full throttle...I don't like beating and pounding on stuff even though these engines can take that kind of beating all day long.