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I built a 84 K-30 with a Suburban frame, one ton axles, n/a 6.5 Diesel, and a properly built 700r4. I tow in 4th gear all the time, I have 4.56 gears and 33" tires. The truck gets 17 empty and about 11 towing my 35' Avion pull trailer( 10,000 lbs). The point is you can tow in overdrive with a correctly modified 700r4 as long as it doesn't hunt between 3rd and 4th.
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