A work associate of mine had a '97 K1500 350. He installed Edlebrock headers, and catback. He complained about a lack of torque missing after the installation. My input back to him was to add additional power enhancers that could better match the greater capabilities of the exhaust, intake, chip, cam, rockers, or simply go back to the stock manifolds, and exhaust and chip the OEM setup for a modest gain.
IMHO there are "matched" characteristics that have a relation to performance characteristics of other related components, much more than considering only individual part itself and any max HP/TQ gains. The intake,cam, heads, exhaust manifolds, y-pipe, and exhaust are all a tuned unit. Change in one can effect the others.
Freeing up the exhaust will typically otherwise OEM vehicle will likely increase HP, this means there is an increase in torque, but most will find the additional torque is higher and the band of torque is higher in the RPM band. Thus there is an increase, its just not where it used to be relative to RPM. Thus the feeling of X% throttle input netted previous Y torque, now after the aftermarket part there's Y -10% at the X% of throttle.
In your case rustbucket its my belief that the new OEM muffler reclaimed the design flow characteristics that were lost by the compromised leaking old muffler, thus correcting some of the odd behaviors experienced previously.