Your thoughts are right in line with my own, Texis. But I think you need to at least double that $2000 figure to upgrade & repair the front end. You can blow right past $2k without even getting to the hub and inner axle conversion. I have the receipts... Four Moog ball joints, 3rd gen adjustable track bar, DSS brace, complete Moog T-style linkage, new RS9000X shocks and aftermarket steering stabilizer and custom brackets, aftermarket poly-bushed tubular adjustable control arms, new axle ujoints and axle seals. It adds up painfully fast. And you haven't yet touched the CAD & unitized hubs & scrawny multi-piece axle shafts.
It will never be a strong as a kingpin D-60, but you can get it close once you do ALL of this and the live-bearing hub, lockouts, and 35-spline axle conversion for another $2000 or more. So it will take at least $4K get you "as good as a 2nd gen gets in front", and that's a tremendous amount of money for just the frontend, imo. And don't forget the $500 to $600 cost of two new front tires that are surely trashed from the old frontend.
And I really have to dispell the myth about coils riding better than leaf springs. All you need do is ride in my Dodge then take the same ride in my K30 with SoftRide, flexible 2 1/2" lift leafsprings all the way around (NO rear blocks). Heavy loads are handled by the Ride-Rite air suspension in back. That truck rides and drives like a dream on 35" Mud Terrains for less than $1200 back when I did it, including RS9000 shocks and dual stabilizer. And it already has the real-deal Dana 60 with kingpins, live bearing hubs, lockouts, and 35 spline inner shafts (outers were upgraded to 35 spline, too). Simple, tried, and true and MUCH less expensive to lift, modify, and maintain. Its never had a shimmy, shake, death wobble, or trashed a tire in 23 years.
Someday, it would be very interesting to get a 2nd gen dodge extended cab chassis and a K30 chassis side by side in my shop and get to work with the welder and torch and plasma cutter and put leafsprings and a chevy D-60 under the 2nd gen like is so popular to do to the newer chevy's with replacing the crappy torsion bar suspension with ford leafsprings and dana 60 solid axle.
The guy that comes up with a "kit" to do that on a second gen Dodge could make some money marketing it. I realize I would then have a passenger side drop axle like the 1st gen dodges and older chevys did, but that's perfectly OK since I could use an NP205 behind the NV5600 to make that work and gain a tougher t-case in the process.
We do all have our different ideas of "the perfect truck" and its really cool when every now and then someone actually builds their dream truck. I love the old Chevy styling and how they "feel" to drive. I like the little things like vent windows and rain gutters, too. A bigger box. Reliable power accessories that don't require microchips. You don't get those anywhere anymore. I especially like my 4-door crew cab single rear wheel K30 with it's straight-from-a-Texas-ranch custom cowboy-cadillac leather & oak interior. Wow! Those Texans sure know how to make a man-cave out of the interior of a truck!
It would be a significant task, which has been done many times before, but putting a 12 valve and NV5600 in it would probably be a lot cheaper and easier than putting a leafspring kingpin D-60 under the dodge. For me personally, much as I like some of the things about my '96 Ram very much, I would then have my own idea of "the ultimate truck for Scott".