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My rear end is a Dana 60 3.54 gear ratio and is not a limited slip. I'm wondering how well it will do with 35's or 33's 12.50s (with power and gas mileage). Should i keep it or should i get a different one?
It depends on what you do with your truck. If its mostly a street driven truck and a mild trail rig, the 60 will do fine with 35's. If you plan on wheeling it hard or loading it heavy, you might consider stepping up to a Dana 70, Sterling 10.25 or a GM 14 bolt.
Depending on your engine, you may want to regear to 4.10's. I ran 3.50's with 35's for many years, but it was way too high geared for the trail.