Anything is possible.
Money is the lubricant for this type of project.
There are much more simple way to make a 1000rwhp street car, that will cost less money, and are proven as reliable ways to do it.
However, it's a good challenge, and there are a few 1k+rwhp 7M based engines out there.
The reality is, with that kind of power, traction is a serious problem. Even if you start with a AWD platform, add in over about 800hp to the wheels, and it's just tire smoke most of the time.
There are many 1khp cars that "limit" the power off the line, and then allow more and more as the speed goes up to keep the tire slip to a certain percentage so the car can still acclerate. (When they calculate the changes wrong, the car is either slower than it could be, or the tires break loose, and the car can wreck, or again is slower than it could be.)
On the street, that calculation is in your right foot. Most people have a steep learning curve for this type of vehicle. (IE: Sideways at high speed, into a wall or other solid object, and they are lucky if they walk away alive.)
I see it on sport bikes constantly. Put a 150lb rider on a 180hp bike that is less than 400lbs wet. If the throttle is used too much, the bike either flips over, tossing the rider and destroying the bike, or the rear wheel slips out, and the bike goes down for a tumble, often catching up the rider in the process. To put this into persective, to get the same power to weight ratio, a Supra would need about a thousand at the wheels to just compete with a bike you can go in, plunk down 13k, and ride off the dealer lot with.
Do some mods to the bike, and they are even faster. (Again, everything is traction limited however, so apples to apples, you'd need a bike with drag slicks on it to compete with a car with drag slicks, but most tires for bikes are pretty sticky to start with, so again, the bikes have the advantage when ridden correctly.)
So, back on topic.. Sure you can build a 1k 7M MK3. (In theory, the "hard parts" inside my motor can handle that kind of power. It's going to take a much larger turbo, intake mods and a host of other expensive stuff to feed the motor that much air and fuel however.) I'm just happy it's running, and at 11psi of boost, can break the rear tires free at will. (Wait till I start adding more boost.. LOL)
Perhaps I'll find out if 650 to 700hp is enough for me on this car? (I think it will be, and it should be reliable for awhile at that power level since it's built for much more.)