Yup, I had a 99 K2500 ECLB 6.5/NV4500 truck. I towed my 6k travel trailer with it regularly, as that was the intended use for it.
You must be registered for see images attach
I would say, smaller towing duties the 6.5L is fine. But you can't stack this against a Cummins of Powerstroke the same era: they are just not in the same category. But they are honestly a better motor for transportation, why do you think GM put these in 2-door tahoes/yukons and 1/2ton pickups? Ford and Dodge didn't. With my 3/4ton I saw a regular 22MPG empty on the highway.
As mentioned above, these trucks are prone to overheating due to the IDI nature and the fact they are non-intercooled turbos. This really made the other downfalls such as the cracked heads and webs show up. The next issue is the PMD (pump mounted driver) which controls the fuel in the 94+ models. Again, another bad design.
If you get one, exhaust, relocated PMD and EGT/boost gauges are a must. 99+ trucks are the way to go, as they had a better block than the older models, and received all the best cooling upgrades over the years.
I bought the truck to tow instead of using my K1500 TBI350 truck, had it awhile, and I have since sold the truck. I have now built a 454 for my 88 Sierra. My 454 is worked over a bit but it outpulls the 6.5L in every way shape and form (without worrying of overheating) with the exception of one area: fuel economy.
Would I buy a 6.5L again? Yes. But not as a dedicated tow rig. For something that you commute/distance travel in, and haul occasionally or tow light loads, they are great.