Depends on how bad the 'frame rot' is personally. you're getting into a massive can of worms if you're getting to the point of replacing the frame. My two cents would be to fix the immediate, affordable, issues and sell it off in a couple months when people are even more desperate for a truck. Hell, depending on what you paid, you might even find a dealer willing to pay a reasonable amount for it.
Take it from someone that's put.. well.. we're probably at $10k overall into my truck from repairs now into a vehicle they paid $5k for upfront. And I still don't have the rust taken care of. Thankfully it's all cosmetic. Believe me, when you have a truck that looks like it wasn't taken care of, it wasn't. And it will find little ways to bite you in the rear every few months.
Id weigh the potential costs against swapping it for another avalanche in a bit better condition, you know? For example, where are you getting the frame from? Would it be better to just keep that truck instead? ect. I dont want to scare you off the avalanche, they're great trucks. But i'd rather see you spending the money where it counts.
As for the brakes, it depends on how used you are to GM trucks, especially ones from this era. The brakes feel quite a bit spongier than all of our other vehicles just because of how the hydro booster works. The brake lines are common failure points as well due to rust. If yours havent been replaced, id expect to do that at some point.
The gas guage can be a variety of things. The stepper motor in the gauge cluster, the gas level sensor mounted to the fuel pump, or the wiring running between the two. The sending unit itself tends to rot out. Water gets up in there and sits.
Gas filling is of course usually an issue with the charcoal canister and the vent tubes connected to it becoming blocked. On the bright side, it means the rest of the fuel system is pretty well sealed at the moment.