What does your TC stall at? Is that 3400 RPM it stalls at? An aggressively lock-up strategy for the TCC may salvage your MPG. When I went to the Edge 2800 in my car, I lost about 5 MPG around town. Sure, part of that is probably due to the LT4 conversion kit, but maybe not. Out on the highway, when the TCC can lock up, I see about 20MPG, which is all I ever saw stock.
I have some issues with my transmission now which prevent me from locking up the TCC aggressively at cruise throttle, but once I get those worked out, I expect to see better MPG.
If you got your AFR and timing optimized you might see as much as 20HP gain, maybe more. MPG may go up 1-2MPG as well.