To bump off what rusty was saying, the engine RPM, for diesel or gas both... have a "sweet range" of RPMs, we call them the power band, the lower most and highest RPM that maximum POWER is produced. Tires, diffs, transfer case and transmissions all play a factor in what the RPM is going to be for an engine at a given SPEED (MPH).
If the engine is within the power band in 4th gear at 55 mph, for example... switching to 5th gear would reduce the effective horsepower produced by the engine, thus climbing a hill in 5th would not be practical.
Another factor that would play into the whole scene, is... the amount of weight that that horsepower needs to move.
For example, just pulling numbers out of the sky, if you had 100 lbs per 1 HP of power, you would be in good shape. (This is just for discussion, reality dictates different numbers). If you load your vehicle up with cinder blocks and tree trunks, you may now may have 400 lbs per 1 HP of power. Reduction in gearing is needed to be able to move that much weight, thus effectively "multiplying the amount of power at the wheels".
Theres more to it, and Im sure someone with more knowledge can expand on it.
HTH,
Andrew