Cats in my experience don't decimate MPG that badly when they go. The O2 sensor is in front of the cat in the exhaust stream so it can't read any differently whether the cat works or does not.
Your 1988 truck's injection system calculates how much fuel to inject using a method called speed density. Speed density takes manifold air pressure, temperature, O2 sensor feedback and RPM to calculate the prospective air/fuel ratio and adjusts the TFI & fires injectors accordingly. How new is your MAP sensor? How about your PCM's own (different) tach sensor? Intake air temp sensor?
Other things that impact the AFR when they go:
- PCV valve
- EGR valve
- Vacuum leak
Good news. These are all easy.
- Soak the PCV in some carb cleaner for a few hours, blow it out, rinse it, put it back in and you're good.
- Grab a piece of vacuum line and hook it onto the EGR valve. Suck on the other end as hard as you can. If the engine quits, your EGR works.
- Test for vac leaks with whatever you're smoking in the shop. Hold something that's burning up next to lines, and if you see suction pulling smoke in, there's your leak. You should also hook up a vacuum gauge to various lines and see if they are close to baseline manifold vacuum at idle.
Rear main seal holds oil in. When they fail, oil gets out, thats about it. Not going to kill MPG.