I'm not sure why the 2 choices need to be "Old failing POS" or "Brand new truck".
I had a 1997 Suburban so I'm quite familiar with the overall chassis. What an ill-handling, loose steering POS. If I was in your shoes I would be looking for a 2005-2006's standard wheelbase (132") F150 pickup with the 5.4 V8. I regularly tow with a 119" wheelbase Durango so this would be even better. Either the standard bed non crewcab or short bed crew cab. FAR more pleasant to drive and would tow well. Looks like towing range for the 4.6 and 5.4 starts at 6500 and goes up to 9500 depending.
Something like these (I know next to nothing about Ford pickups except thatt they were generally well reviewed and winning comparisons in those years):
http://raleigh.craigslist.org/ctd/1619475138.html
http://raleigh.craigslist.org/ctd/1643684521.html
http://raleigh.craigslist.org/ctd/1651565922.html
http://raleigh.craigslist.org/ctd/1650291808.html
_________________
Mike Whitney
whit32@gmail.com, 919-454-5445
V10, V8, V8t, I6, I6, V6, F4t, I4, I4, I4, I4, I2, 1, 1