TC's have the following advantages:
1. Can use truck and leave the camper behind unlike a motor home
2. Can tow greater weight than most Class C and some Class A motor home
3. Can have 4wd and higher chassis clearance than a motor home
4. Can upgrade truck and camper independently of each other
5. Can tow additional toys along or take off without the kids and toys
If these advantages don't pull you toward one, you would be better off with a motor home or trailer.
Your era truck probably has a low GVWR compared to trucks ten years newer. However, your rear axle capacity is really the limiting factor on the camper you choose. I'm guessing your rear axle weight unloaded is something over 3000 lbs and it has roughly 10,000 lb OEM rating from AAM. This leaves you with 7000 lbs for camper, hitch weight, people and gear. Expect that you will add 1000 lbs to your camper's listed dry weight by the time batteries, fluids and gear are added. Staying with a camper that is listed under 4000 lbs dry is about the limit of your truck while still giving you sufficient reserve to not have to weigh everything and everyone on each trip. If you want stay under GVWR, you are probably looking at a 2000 lb camper which just would not do for your size family.
I suggest the kids sleep in a converted enclosed trailer. Dad and Mom can get a good night's sleep in the camper with bathroom close by, but the kids still have access. Most meals will have to be outside or in the enclosed trailer due to tight seating. Think of the truck camper as the master bedroom, bathroom, kitchen and office and the trailer as kids room, family room, dining room and toy garage.
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