Would that Colorado transmission and rear end take the torque and horse power?
Maybe. My understanding of the H2/3 series is that they went to same drive train as the other GM SUVs, but we'd need to check the specs. I would expect the diff and rear end would be OK. If it's four wheel gearing the front CV joints might have trouble with the torque. Don't know about the tranny.
It’s a corporate rear end, but you would have to change out the transmission (it comes with the “6cyl” version of the transmission, which has fewer discs in it) for the V8 version.