i did this to a 99. EGR conversion that is. rotohead is on point with what i experienced as well as what i wish i had looked into prior to.
my guess is the axle swap for a 01. 5 to 02 axle would render the best results. but unless you have an in for a good deal, this could be MORE expensive than the EGR setup.
i want to advise you on the emergency break thing. it will never work properly no matter what you do unless they've fixed that issue in the last couple years. reason i bring this up is, i didn't think this would be an issue for me but it drove bananas that i never noticed how much i needed the e-brake to work before the change. i was able to improve it. but on a hill or slight incline with weight, it will never hold.
if i were to do it again i'd go with the chevy upgrades first (cheap and reportedly very effective) then if i just had to have discs, i'd do a lot more research on the axle swap first.
also, i was told all these same things BEFORE i did the egr conversion and i did it anyway to just learn the same lessons that were out there already.
the egr setup is nice and really nice looking if you can see the discs through your wheels, but, FOR ME, it wasn't worth it.
i should clarify, since i'm bordering on bashing egr, that i don't nessessarily regret it either.
good luck, jeff