Adding bushings to the lug holes in the rotor should not be an issue, modern GMs are made with larger holes in the rotor, they do not have any stud damage problems. The real trick is to get the rotor centered to the hub center, hub piloted is a better term. Once the nuts are tight, the rotor will not slip. Some thing that you guys might look into is the late model (2000-2006) Silverado 2500/3500 HD. They have 4-wheel disks that clear 16s. The caliper is mounted to a separate bracket and is dual piston on the front. I think that the braket may be able to be modified to work with the staight axle, the rotor would be an easy slide on to the hub as well. I'm kind of leary of the Dodge rotor, as well as the earlier Chevy rotor, as they are designed to go on the backside of the hub and held on with the stud knurl. They also have a large square hole in the center, to allow it to fit over the hub mounting, that prevents proper centering. A trip to the salvege yard may be in order to get some more ideas on this.
By the by, I have considered this idea for my 1/2 ton, only using 1500 Silverado parts.
I'd also like to note that the rotors for the late Silverado are 1.650" on the front.
