A stock 1968 292 L6 was rated at 170 horsepower, just guessing here, but with 4 Bbl, intake, headers, and cam, I would be surprized if it pulled less than 200 HP.
The 292 is 1.75" taller than the 250 L6.
I thought of putting a 292 in Jeep years ago[but I didn't have one]-- I was told a CJ7 was the body I wanted since there was room to play with lengthwise.
I'm now thinking of putting a 292 (@ .060-over)in a K/5 body I have, and building it with SM 465, NP205, D44, GM12-bolt w/posi, and folding fabric top. I don't know why GM never optioned the 292 in the first gen Blazers and Jimmys, but I suspect they were more interested in marketing 350 V8s w/ th350s (and all that dealer maintenance) than offroad performance. The 250 was available, though.
Good luck.