I have had three 2nd Gens, all with the V6, and they've actually served me well over many years and many thousands of miles. Only one of them blew a head gasket, but I know it IS a problem for those--although if you have to do one, it should be fine for a long time after. Yes, they are definitely weak at higher speeds, but that's simply a result of too little power for too much weight, not a junk engine. As for the lift and 35's, your primary problem will be the CV axles--they won't hold up to the stress, especially if you wheel much (and who wouldn't, given the set-up). With 5.29's, the truck will accelerate like stock. Overall, the 3.0 does fine around town and offroad--it just runs out of steam on the highways, causing you to drop gears to hold speed on long hills or in high winds. If you can get a good price, it might be worth it--I would consider a solid axle swap for the future, though. Best of luck!