I'd run it the way it is, you live in AZ remember. That skid plate looks like an OE piece with steel added to the side of it.
Would you advise drilling a couple holes at its lowest point to help facilitate drainage of debris, mainly water/mud?
That looks to be the early version skid. Like mid seventies. They had sides like that. I have one on mine. It didn't fit perfectly, but it was easy to make it work. I was suspicious if it was originally for a suburban.
The later ones did not have side panels and flexed more but were easier to clean out.