I'd say it would be a great upgrade if both the engine and trans are in good condition.
It should be able to use a 3.08 rear end without issues and would get reasonable gas mileage while still being able to cruise at freeway speeds for hours on end.
Those of us who have run the 194,230 or 250 engines will tell you that they are dead on reliable. The 250 in my 48 pickup had over 200 thousand miles on it when I quit driving it and as far as I know has never had the head off.
