Oil pressure sender switches can certainly fail. Your gauge is largely cosmetic; however, the sender does provide general oil pressure information. If it is faulty, it may read inaccurately. They are inexpensive and easy to replace.
Beyond that, you do have a nearly 20 year old truck with (unknown to us) mileage, and it's a 302 cubic inch cast iron engine. You certainly will not be registering 60-80 psi of pressure at any point -- it will probably idle at 20-30 at best, but on the highway at speed you would indeed expect it to be slightly higher, with higher engine RPMs.
Start with your sender... Good luck.