I prefer option 1 but then again I rarely venture on roads that require 55 and above speeds.
re. option 2: Theres a shop local to me where they specialize in swapping out the original AD frames and drive train to an S10. All the trucks I've seen them do had V8's and in one case they squeezed a small Cummins diesel in one. No V6's or I4's in their creations.
The bed boards raise 6" or more higher due to the S10 frame and they relocate the fuel tank under the bed. The trucks look somewhat stock to the untrained eye but the bad does look mighty high.
Good luck
Dave