That much freeplay is not normal. Check the frame, as mentioned by Prerunner. You'll need to remove the steering box to be able to get a good look at it.
Also, I assume you checked all the front end components, did you check the wheel bearings as well? I chased a problem like this on my 87 for a couple weeks, only to find that my Dad improperly set the front wheel bearings and they were way too loose. I set them properly, and it's been fine ever since.
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1987 V1500 GMC Suburban, 350 TBI, Flowtech dual exhaust, Rough Country 2" spring lift, 56" 3/4 ton rear spring conversion, 33" BFG All Terrains, and the smokescreen engine mod -- Former truck, searching for another now...
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