I have the same problem with the steering wheel, its alignment is off by approx 45 degrees when the wheels are pointing straight forward. I haven't installed a lift or anything, it's been that way since I got this K5, and I've put off doing something about it until I had to pull the steering wheel anyway to do some other service work. That time has come now...
Is adjusting the draglink the only way to go for aligning steering wheels? If it wasn't for that little plastic sleeve with the horn button connector spring having to go through a certain hole in the (stock '88) wheel, it would be real simple to just slide the wheel on in any angle I'd see fit, but that little plastic sleeve messes it up. It seems it would be easier to just rotate the sleeve around to fit the wheel, but maybe that's not doable?