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Engine changes are never as simple as they seem. The 12V will have more torque and higher compression, so transmission [clutch], driveshaft and drive axle may need to be changed. (I think I'd want 1T components).
The engine weight is higher, so that means a new set of springs/shocks all around. Implicit in this is new body-to-frame bushings.
Steering gear is the usual challenge, mainly one of potential interference. Same for firewall versus radiator (which also needs to be new).
Fuel tank & fuel filtration & etc.
Wiring up the same accessories as before can be a challenge . . I'd want to start with new harnesses at any rate given the current engine is due for rebuild.
If those were answered satisfactorily (within my range of skill and $$$) then, yes, the change to diesel would seem "practical".
"Practical" is more about how I'm going to use the pickup (time & miles and money-making ability) far over any increase in mpg. The I6-300 Ford engine is about bulletproof after all. The oil burner has no real advantage, here, IMO. Time/miles to recoup money spent favors the gasoline sixer with no headaches or potential problems about fuel access and fuel quality.
It's a fun change for the heck of it, but I'd rather spend money after a drivetrain re-fresh on a change to 4-whl disc brakes and very best MICHELIN or BRIDGESTONE tires. LEER bedtopper, PULLRITE hitch, etc. New windshield and new interior. Finish out the truck to do the most work versus a heart transplant and below-average road performance (instead of getting closer to todays pickups).
Brakes & tires count for more, IMO.
The right truck with the right trailer is where I want to be with any pickup as the insurable value of that combination (stated value) tells me the most about all the work imagined.
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