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I think it would handle pretty good if you get it stiff enough. You might have to start with an adjustable sway bar in the rear since you would be in uncharted territory.
Lots of work, but what isn't. I've seen it done on a 56 F100. Wouldn't handle like a Vette, but with the right spring rates, it would definitely handle better than the average truck.
Im doing this to my 2000 silverado right now. im not using the transaxle, because the vette diff is pretty weak, but i am using C6 vette front and rear suspension clips.