We had an '02 Tahoe with the 5.3. It towed like a champ, although it started running out of steam when we towed our 2499 around the Rockies. The engine simply wasn't up to pulling the trailer up those steep grades. There's nothing wrong with dropping a couple gears and just chugging along in the slow lane, but it's not the most comfortable way to drive.
However, in our trips to the wilds of Michigan's UP and to other relatively flat locations, the engine was perfectly adequate. Even with adequate power though, if the terrain was rolling or the wind blowing, we couldn't always use overdrive as the transmission would endlessly hunt between overdrive and 3rd gear. Sticking the transmission into 3rd worked fine and didn't appear to affect mileage much.
If what you intend to tow is lighter than a 2499, I'd say you're fine with the 5.3 l. If you plan to tow a heavier unit, you probably want more power.
Hope this helps.
Don
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Don Reitz
2005 Sunline Solaris SE T-2499
2006 Chevy 2500HD D/A
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