A PG trans is really good for a BBC or big engine/high HP or turboed in a light car.
Since you do not have any of the above, your little 6 needs all the help it can get help in the gear dept.
W/the 2004R you will get the better lower first gear 2.75, which you need badly running 2.2 - 2.3 60' times.
As a comparision, my stock 350/5.7 1997 Chevy extracab w/shell weighing 4900 LBS runs 2.3 -2.4 range 60' times w/3.42 rear gears, pretty pathetic.
I really like the gear spacing of the 2004R's as compared to the 7004R/4L60,65E's, plus it has a taller final drive, which will really help you out w/your 4.11's & those really small 24" tall or should I say short tires..
It must be pretty bad on the freeway as far as high RPMs.
I am pretty sure you can reuse your driveshaft w/the 2004R as well as the TH350 trans.
Your options for 2 & 3 as far as them sucking up too much power,, you will not even think about that after the fact that your car will run faster w/either trans over the PG.
I say ditch the PG, it does you no good for the way your car is set-up currently.
Two cents thrown.

What size is the single exhaust pipe to the back?
You could throw on a Clifford intake & see if your combo likes it.
But,,, IMO,unless you run a higher stall w/your current combo, the Clifford is not going to help you, just my opinion, I am surprized Tlowe did not convince you to run a Clifford from the start.

With your current combo, I would try out a 1" & a 2" (both 4 hole type) carb spacer & tune accordingly.
Also, what damper are you using?
MBHD