Speaking from the realm of 5.3/700r4/241 and 4.10 gears in the mountains on 35" tires left a LOT to be desired. As the graph Beags posted shows, the 5.3 is pretty gutless down low. Once you get the engine spinning and keep it above 2500 it will pull it. However, 4.10 gears and 40's is going to bring the suck if you hit a hill or start pushing a headwind.
My suggestion- go as deep as you can afford now. 4.88's would be good, but 5.13's would be better. With the 40's the engine will be more in it's happy spot for torque and not have you going as deep into the lower gears when climbing.
Monarch Pass is probably one the OP has driven over before as a good benchmark on what it's like to climb. With my old combo of the 5.3/700/4.10's I had the trans going between 2nd and 3rd gear for the majority of the climb. 2nd would pull it up to 45-50mph where I'd go for 3rd and let it go until the speed dropped enough to go back to 2nd gear again. It was madness to listen to the engine rev past 5500-6000 rpm for what felt too long, but as long as I kept it there, the guys with the big blocks behind me didn't catch me.
LS engines like to rev. They are built for it with roller lifters and roller rockers. Had I changed gears from 4.10's to 4.88's it probably would have been way more liveable.
Off road with the magnum and 205, there's more than enough reduction to crawl well with 40's and 4.10's. It just comes down to if you want to drive long distances to the trail or trailer it.