My mom drives an 05 chevy 1500 pickup, short bed and crew cab, with the 5.3, and it is 2wd and stock. The best she has ever seen is 17 mpg when it was new. It averages 16mpg. The power is great, but the trans is lazy and doesn't like to go all the way to first when you slam the skinny pedal. I could never baby an engine. I want to get there while driving right at the speed limit, and I will accelerate at a decent rate rather than grandpa like. My 79 C20 has a 406 sbc and it doesn't matter much how I drive it........8-10 mpg. My 88 k5 on 10 bolts, 35's, and 6" lift gets 10mpg even on the highway with 4.88 gears and overdrive, with a new stock 350 tbi.
I don't see a 5.3 easily doing 20 mpg in a K5 blazer. I also don't buy the story of 20 mpg while towing with a 5.3 in a 2000+ model chevy.