The Blazer 12-bolt looks like it has what is called a Gov-lock differential. It is a governor type differential that mechanically unlocks above certain speeds.
The Gov-lock, if it is still operational, will work until it quits... I had one in my '74 K10 (i.e., 12-bolt with Gov-lock) and it worked well until one day it quit working and I went from having a posi-trac rear to essentially a spool rear. I've also heard of them referred to as Timex timebombs...
I wound up rebuilding my 12-bolt with an Eaton clutch type limited slip rear differential.
As for the steering gear, I don't think the 4x4 steering gear will work with your 2 wheel drive pitman arm. These trucks never had the best steering, but a rebuild of your current box could help, especially if it has a lot of internal wear. Additionally, you might verify the other steering components (tie rods, idler arm, ball joints are in good shape).