That was it. Somewhere along the way someone installed one of the small orange/black one-way check valves backwards in the line from the AC VSV back to the idle-up actuator, so the VSV wasn't able to pull the diaphragm open. I reversed the check valve and voila, it started working. Adjusted per factory spec and it works like a charm. And along the way, I now know how the entire frigging vacuum system works on this truck. Also learned that the truck won't shut off if you unhook any of the several vacuum lines that supply the vacuum kill circuit. Nice to know that.
For those who come later and are chasing this problem:
On the 88 (and assumedly 89) 12H-T with AC and Auto, there is a vacuum circuit that, among other things, controls the truck's ability to idle itself up either when cold, or when the AC is switched on. The cold start idle-up event is achieved vis-a-vis a sensor in the block (JDM driver's side) just back from the injection pump. It has two vacuum lines connected to it. When the truck is cold, the sensor switches open and allows vacuum to pass through it and on to the idle-up actuator, which is a yellow cad plated 3" diameter plunger diaphragm mounted at the rear end of the injection pump. When vacuum hits that, it closes the plunger and pulls a tab against the idle arm and increases the idle. The amount of increase is determined by the threaded adjuster screw on the pull tab.
When the AC circuit is activated, a VSV located on the JDM driver's inner fender well opens and allows vacuum to pass through it and draw on the same idle-up actuator, but on a different port. The vacuum pulls on the plunger and it pulls the same tab as the cold idle-up to increase the idle. The adjustment for the AC idle up is on the forward side of the actuator and consists of the threaded diaphragm shaft and a lock nut. By loosening the nut and threading the shaft in or out, you determine how much idle-up is achieved when the AC is on. Its complex but ingenious because both circuits use the same actuator to move the idle position lever, and the adjustments are both on the same actuator shaft (one on the pull tab end and the other and the opposite tail shaft end).