A good gear ratio for your truck's configuration would be 4.56:1. Deep enough to let you enjoy low range but not so deep you're screaming on the highway. 4.10:1 would work but you'd sacrifice offroading for highway rpm's.
You have the infamous G80 "Gov-Lock" "locker"...at least it's a locker according to GM. Under certain circumstances it will lock up tight. But under many circumstances it won't and given enough age and mileage it'll stop locking completely and then it will probably do what earned it the nickname "Grenade Lock".

It's a piece of




to the first degree. When you regear definitely throw a real locker in that rear axle.
Lifespan of your front axle? Well...it's a small thing with an aluminum housing prone to cracking and CV joints that are anything but the last word in strength. Play nice and drive it smart after you've regeared and it might survive for a while. There's lots of folks driving around in half ton GM's on 35's who have never had issues. Now go wheel hard with it and yeah, front and rear axles are suspect. GM wasn't thinking about offroad durability with these axles when they designed them and they sure as hell weren't thinking about anything like 35" tires.
Got any pics of your Yukon? I had a 92 Blazer K1500 years ago and wanted to get it on 35's but never got around to it. Was to busy fixing it and then finally gave up on it.