If you are wanting to cruise it on the highway and get better gas milage and are willing to spend the money for a rebuilt (or have an old one built) 700 R-4,I would seriously consider it. Look for a trans that is from 1984 and newer.It has the larger 30 spline input shaft. (Earlier ones from 1982-1984 have a 28 spline)
I actually put a 3,400 stall in too.
It is so easy to do a trans swap these days and most everything is bolt-on.You can use your old yolk from your 350 Turbo.They have the same number of splines.
With your set up you are probably running about 3,100-3,200 rpm's.With the same set up,but with the 700 R-4 you should be turning 2,100-2,200 rpm's.That is why I went with 4:10's because the overdrive helps a lot.I'm still only turing about 2,400.
I have lowered the front with Hotchkis lowering springs which should lower it 1-2 inches and then I cut 1/2 a coil off.It lowered it about 2 1/4".The back is lowered about 1 1/4" with aluminum lowering block I made at work.It has a slight rake to it now.
Here's a pic:
Please let me know if you have any more questions. It makes it SO much easier when someone else has already gone thru the problems and hassels to find out what works and what won't.