I'm impressed that you are flat towing a GV with a GV! I guess I need more info on what changes you made on your 2 liter GV to answer your question on regaining lost mechanical advantage/power. If you added 31" tires, and started with 4.62 stock gears I'm guessing 5.12s ought to put you just about back 'on the money' for loss mechanical advantage, unless you threw on some really heavy mudders. Even then, 5.12s would have to be an improvement over 4.88 gears if you are running an auto tranny. I jumped up from 4.62s to 4.88s to run 29" 235 series tires. I know I would have to go to 5.12 gears to pull 31s to keep from wearing my clutch out prematurely. My truck has a 2 liter that now has 162K MILES on it and it still pulls strong. I virtually idled up a 25 foot bank last weekend at about 1500 RPM and never slipped a tire in the process. The jeeps there were cranking quite abit faster to do the same thing(?). Matching your gears to your tires and attempting to keep your power train at stock or better ratio is important stuff (IMHO). It keeps the stress spread evenly across your power train versus creating a stress point.
Personally, I am a big fan of the 2 liter engine over the 2.5. What are we talking here... a 20-25 HP increase in the 2.5 over the 2 liter's (120-127 HP)? Repair is less expensive/aggravating on the 2 liter. The water pump placement for example. Timing chains, for example. Tear down is simpler. Better fuel economy of the 2 liter is a gift that just keeps on giving too! I've driven my father-in-law's ZR2 with a 2.5Liter (pristine OBTW) and I'm just not impressed with the power difference... given the huge difference in fuel economy.
What is your plan for the '99 GV? Are you going to part it out or what? IF you do intend to part out pieces, I'd like to have dibbs on both the outside door mirrors. I agree with tcfootball, it looks like it is in decent shape, at least the body is unless the passenger side is totally wiped out.