Stick with the 350 TBI setup, they got the best mileage out of this generation of blazers and burbs. The 3:73's seem to work great with stock 31" all season street tires.
When I bought mine I was averaging 11 to 12 mpg commuting to work, it ran really good, but not as good as I thought it should/could. After a year of tinkering and rebuilding/replacing things, I could average 15 to 17 mpg's consistently while driving it conservatively for fuel mileage.
Things that helped:
1. Cleaning/rebuilding the throttle body
2. Fixing the intake manifold gasket leak(vacuum leak I couldn't find) and replacing the TBI base gasket
3. Setting idle and timing back to factory specs
4. New O2 sensor, IAC sensor, and TPS sensor
5. New EGR valve (mine seemed fine, but was sticking occasionally)
6. New plugs, wires, cap, rotor, etc.
7. Replacing the 180* thermostat with the proper 195* one!!!
8. K&N filter in stock air cleaner housing with some mods
9. I've done some other mods that helped with seat of the pants power, but made no difference in mileage