I just resently switch my T-5 for a 700R4 with the help of Tom Lowe. I have a 261 ci bored, cam, 4 barrel. With the T-5 I had a 2.73 gears in it because I do a lot of highway driving. Tom Langdon suggest using 3.55 to 4.11 axle ratio with the 700R4 or 2004R to get the maximun performance. So far I'm very happy with the 2.73 ratio. It doesn't lug the engine in town and out on the highway I can run 75 MPH at 1,800 RPM's. And that's what I was looking for.
I don't know much about the 2004r but I don't think that you will lose any performance with it.
Never thought that I would be happy not shifting the 53, but I guess old age has caught up with me.