yeah, for a little while.
and every so often, you get lucky with some freak engine, but that doesn't mean it is the norm.
If we are talking about the same 700 hp Z, that engine was rebuilt, and each and every component was tested several times before installing it. Not all rods are created equal. They basically got themselves all stock parts that were the best they could get and assembled the engine with insane precision. We aren't talking about some, grab parts out of the bin, and slap it together with a robot in an assembly line. Once it was together, they spent a rather insane amount of time tuning it. things like tuning spark time to 1/2 a degree. So yeah, if you go through all of that work, you can have that much power too. But why spend 50grand+ when you can get a typical rebuild kit and have a solid engine that makes the same power? for less than 3 grand.
This is like that freak t25 that got passed around for a while. it made over 300 whp but that doesn't mean all t25's can do that.
Hell, there were people that have boosted a stock KA to 40 pounds and drifted an event with it.
doesn't mean that it A) can be done to every KA and B) lasted longer than that event.
Stock turbo's just don't support 500whp. You would need every supporting mod you could get. A stupid amount of tuning, and you would need to run 18-20 pounds of boost. Even the dumb ass ricers on most 300zx forums will tell you how not safe 19 pounds of boost is for stock turbos. 14 is the average people do. You can occasionally bump to 16, but even that is pushing it, and chances are, your car will actually be slower because of the change in the power curve.