I'm running a 599 block in my build. Yes they can still crack although they are one of the strongest GM series blocks. Mine has about 130-140k miles with no cracks (motor is currently torn down on an engine stand). I'll be installing a stud girdle and ARP studs to help the bottom end hold together.
After 2000 there were still alot of gm blocks being put in as crate motors so its a crap shoot as to whether its a GM or a GEP block. All depends on how much you're willing to spend on this build in the beginning.
As far as your power level goals are concerned I'd start with a better flowing exhaust, better turbo such as the ATT or hx 40, feed the beast mod to your injection pump and tweak with the injection pump. For reliability if you don't want to tear the motor apart a higher output water pump with the dmax fan and the 4 core radiator that your truck should have. our trucks (mines an 87) have much better cooling ability than the 90's era. If possible go with the radiator that does not have the built in oil cooler.
If your willing to tear the engine apart check the mains for cracks. Up to you whether you want to install main studs and a girdle, mixed reviews on here about if a girdle helps or not. On the top side of the motor I don't think you will need to worry about head studs initially. If later you decide you want more power would be a good idea.
Another concern, drivetrain clearance. Because of the wheelbase length you may want to consider either raising your drivetrain or rotating your t-case so you dont catch it on something when your offroad. This also depends on how difficult of offroading you will be doing and how much lift your going to run, might be that you wont have to do this. On mine I'm using an ORD high clearance engine crossmember and their mounts, raised the engine 2" and moved everything 3" forward. T-case now is within 1/2" under the frame at its lowest point with the big block gasser, sm465 and np205. Similar issue with the gas tanks. Also make sure to box the frame at the steering box and run the longer bolts.