I ran a stock internalled 7M at 400+rwhp for over 4 years. And that includes several track and dyno weekends where I pushed it near 500rwhp on race gas.
Now I have a built 7M. Although the price of 2JZ swaps have come dowm a lot, to me it seemed more cost effective to build the 7M and keep all my existing parts. My built 7M shortblock with forged pistons and rods cost me $2500 total with no short cuts.
And just because X-Man pushed the 7M to 753rwhp, does not mean that is the limit. No damage was done to the engine on that dyno pull, so he could have pushed it further.
Besides all the kids trying cheap out on all the parts, I think the other big limiting factor is the stock ECU. The stock ECU has too much timing advance when you add piggy back fuel computers which leads to knock and blown headgaskets. To do it right, you need a standalone ECU.
Don't listen to the rumors.. Get the facts..