It's been a perfect combination for me. If I had a 302, I'd probably want 4.88's, but with 4.56's and a 5.8L, I cruise at around 2200 rpms at 65 mph and my crawl ratio is very close to what it was stock with 3.50's, a C4, and D20. It's very nice to drive around town or out on the open highway. It really doesn't unlock the torque converter or down shift unless it needs to to go up a grade, and always seems to find the right gear for the right speed or grade. A lot of that is in the Baumann controller program. It shifts and behaves almost identically to my newer F150 with a 5.4L and 4R75W.
The fuel mileage has been decent. I've gotten as good as 14-15 on a 65 mph cruise down the highway, but typically it's around 11-12 mpg in city driving with my foot in it and somewhere in between for mountain driving. With the C4 and 4.56's, the best I could do was 11 mpg.
Offroad it's worked well with no temps above 200, but I have a very big tranny cooler. I have towed my camping trailer a few times and I can easily maintain 60 to 65mph up the steepest grades and passes without temp issues either.