So far, my 4L60E from a 99 Escalade has been holding up well behind my '99 6 Liter. I don't abuse it either. Occasional 3500-4000 lb. loads of scrap to the scrap yard and still holding fine. I have 6500+ miles since the swap and don't really know how many miles on the trans since the Escalade donor had the dash ripped out of it.
As for the PCM flash, I would have to think your 5.3 PCM should be able to run the older 4L60E provided you change your internal harness. Not sure but it sounds reasonable. My PCM was reflashed to remove VATS and to program it to run the 4L60E since the 6 liter originally had the 4L80E behind it. Was also programmed for tire size, gear ratio, tachometer, etc.. To date, no issues. Knock on wood.....LOL.
'93 Chevy 1500 4X4 ECLB with a '99 Silverado LQ4 6.0 and '99 Escalade 4L60E. SOLD IT!!
New toy: 2001 2500 HD 4X4 Extended Cab Long Bed
John