Update after driving it for a few days...
After reading about residual valves, their purpose, and how they work, it sounds like I need a 10 psi valve to run drums in the rear to keep the shoes pushed out. Otherwise you have to do a quick double pump to get rid of the slack. I've been doing that, and WOW! Firm pedal and it stops really well with a good, progressive pedal response.
This is temporary until I get the FF in, so I'm not putting any effort or parts toward the drums. The discs are considered by most to be an upgrade, so I expect it will at least stay the same, which is already quite an improvement over the 60 brakes.
The bad (not really bad, just data):
The 863/850J combo is a hair too firm for a DD only truck. I'll bet it is the equivalent of the Slee 4" on an 80. This should be perfect for fully-loaded week-long trips into BFE. I may explore medium springs in the future. Overall, though, it is similar to the heavy leaves, but smoother and with softer and squishier initial movement.
I've got some weird noise like something is loose or making contact underneath/outside the truck going over bumps. I can't find any play in the tires/axles/suspension, but I haven't had time to crawl under and inspect everything. I suspect it is the worn out body mount bushings and I'm just hearing the entire truck rattle. Replacing those is on the short list. This is still a 30 year old truck after all.
Caster is drastically improved after putting the plates on. It might could use a touch more, but it could also just be the increased bump steer from the drag link angle (I had flat drag link geometry previously). It is not scary to drive, though, and other than the bump steer, not much different than before.
The good:
It drives and tracks straight down the road, so I think we got it fairly square. Hopefully it looks that way to those following me.
The increased brakes and better suspension are a much better match for the V8. It feels like a more balanced vehicle now. The handling and brakes are a better match for the increase in power. It does not feel any more tippy in the turns, but actually more stable, even with the increased height.
Steering feels more natural now. It is much more manueverable in parking lots, due to the Ackerman geometry built in to the 80 setup. Luke (4x4Labs) mentioned there was not enough room on the standard crossover arms to get ideal angles. Anyway, it feels like I could turn around inside a parking space. This should really pay off on the trail. I'm also running the correct backspaced/offset wheel for the knuckle now.
The 80 PS box does have more power than the 60, but since adding caster and a steering damper, it is not quite the increase it seemed previously. No complaints though. It seems like it has a quicker turning ratio. Anybody know?
It looks like I can go up a tire size (to 35's, which I the biggest I want to go anyway) without having to cut anything or sacrifice much, if any, up travel. The shackles on the front leaf springs move the tires forward under compression and shove them into the fender. With the leaves, I had it set up where it would just contact if fully stuffed & fully turned at the same time (with 33's).
The coils move pretty much straight up and down, so a bigger tire fits more easily. I should be able to fab extended bumpstops to keep everything happy when fully stuffed & turned.
Next up is getting the permanent FF rear rebuilt and under the truck and getting some new tires. Hopefully both will happen in the coming weeks.
The axle is getting the full treatment - all new bearings, seals, parking brakes, general brakes, and lots of new nuts & bolts. Should be pretty when it's done.