I made a completely new exhaust and used 2-1/2" pipes all the way to the end. This is a huge engine and it needs to pass a lot of air. The wimpy original Pick-up truck manifolds and 1-3/4" pipe are totally inadequate. Also, we made a cross over pipe to equalize the 2 sides. The whole exhaust can be unbolted and removed if needs be! Also the whole thing was ceramic coated afterwards. If you choose to go the big 2-1/2" path, make sure you include flexible joints in the middle or you will get vibrations! You are right, both pipes stick-out straight back at the rear.
Regards,
Emmanuel