I agree on the mustang T5s, that is what I use. In fact, I like the T5z. You can get the 2.95 1st gear in the mustang boxes. If you want the S10 shifter location you can exchange the tail section and the shifter rods. I run a 4:11 rear gear. To me a close ratio is where it's at in any kind of performance situation. I you just want to get around and really don't care about the gearing then the other gear ratios will work. And if you want to haul heavy loads up step inclines and pull out stumps, then the truck gearing is for you!
And I don't think anyone is saying any of the S10 gearing won't work or are not driveable, they work in the S10 trucks and they will work behind a flathead. They are just not performance gearing if you have any interest in better performance. An S10 is similar to most flatheads in a lot of ways, so if you want something that drives like an S10, well then there you go.