nope not under powered at all, i have a 02 4x4, pull my 17' crestliner and well pretty much anything and have never had a problem actually pulls better than my old 95 w/5.0, and i believe they actually have the same hp as well 4.2 has 210/252, 5.0 210/290 pretty close but its probably the gears
Drive train is really what gives you a great towing advantage. You could pull a semi truck with a 4 cyl with the right gears, and enough traction. Won't be a race car but it will get the job done. Torque multiplication. Just like farm tractors and big rigs able to haul a lot of weight. My 97/3.08/ 4.2/ 4r70w pulls similar to my 88 302/aod/ 3.08 because of such a great torque convertor and transmission ! That 4wd will have a lower diff ratio making it pull better than my truck!