4.56's and 35's will suck gas around town and on the highway unless you have od. I am running 37' mt/r's with 4.56 gears and a 700r4 od tranny, plus I have tbi fuel injection, and I still average about 8 mpg around town. Highway is a little higher, maybe 11-12? As stated above, your trying to move a 5000lb+ truck, that is about in the shape of a box. Not very aerodynamic, and 350's in our blazers arent the most efficient engines on the market...
BTW what gears are you running now?
-Harrison