I've always been a 6.2 fan and it would be my recommendation for this project based on cost and ease of swapping.......plus you can make them sound really good. I've owned a '90 K5 since 1994 that came from the factory with the 6.2, 700r4, 3.73's, and had 32" mud tires on it when I bought it with under 50k on the clock. Keep in mind I was a teenager back then and always had the gas pedal buried (insert 6.2 power joke here....) and consistently got 18-20 mpg. I remember being upset when the K5 was retired to a weekend play toy and purchased a '98 Toyota Tacoma to drive everyday. The Tacoma was a base model 4 cylinder, 5 speed, regular cab shortbed 4wd and got the same mileage as the K5.
I also had the opportunity to directly compare straight sixes to the 6.2 when working construction back then. The company I worked for had several C30 and F350 dually's with either the 292 or 300 straight sixes and manual trans that we drove everyday to the construction site. They also had a P30 box van with the 6.2 and automatic. That 6.2 felt way stronger than any of the old straight sixes.
Regarding swapping in a Cummins I really don't consider it cost effective. The $4-$5K cost to swap it over as estimated above would pay for a LOT of gas. Doing some quick math using the following numbers:
10,000 miles per year
Gas @ $2.50/gallon
Diesel @ $2.75/gallon
Increasing MPG from 10 MPG on gas to 20 MPG on diesel (doubling the MPG!)
These numbers equate to it taking almost 4 1/2 years of driving just to break even
The 6.2 has almost the same HP and torque as a pre-75 vintage 250 or 292 Chevy straight six,both make maximum torque around 1600 rpm....the diesel might "feel" more powerful due to it being fuel injected,and the higher compression ratio helps a lot,also 1 ton trucks usually have lower gear ratio's like 4:56's which would make any engine feel stronger than one in front of a truck with 3:08's or 3:73's.
I just went 110 miles in my '82 K2500 with a 6.2 / TH400--I had filled the tank to overflowing before I went that distance,and I drove it partly on highways and mostly rural back roads at speeds between 35-45 mph..it took almost 7 gallons to fill the tank back up,I calculated it is getting 15.9 mpg...
I see no real "savings" having a diesel,I have had many gas engines (a few were big blocks) do nearly as well on the same trip as far as mpg,and diesel fuel costs at least 30 cents more a gallon than gas...
Now the truck is going to need 2 new batteries (1 more than a gasser takes),and some new glow plugs at $10 a pop, (spark plugs are like $1.99),and if the starter craps out,that'll be over $100 easy,a gas engine starter can be had for $30 locally...the diesel takes more oil (7 qts, vs 5),and a fuel filter costs $20,and if the injector pump croaks ,a rebuilt will cost at least $400--you can buy a complete used 6.2 for that probably..all of these things and more have to be taken in consideration if you want a diesel swapped in..
The 6.2 probably is the simplest diesel to swap into a GM truck,since it was a factory option..but I'd reccomend buying a complete diesel donor truck if your going that route,because all the other pieces and trinkets you'll need will be a pain to hunt down at salvage yards..
The fact a lot of 6.2's crack the main bearing webs or the crankshaft,and heads gaskets seem to fail on them fairly commonly, would discourage me to put one in place of a gas engine..once the two I have decide to have a major malfunction,if I decide the trucks are worth fixing and keeping,I doubt I'd put another 6.2 back in..