The LSA is a great motor. From what I can tell (if you trust the interwebs) a cam/pulley and fuel system to support it will have you'll be in the vicinity of the power being talked about (not that we
really need it).
I was going to go the N/A LS3 route and FI later, but have decided for the relatively small amount of extra dollars in now an LSA will pay dividends later. I've got to fabricate a firewall/cowl, headers/exhaust, build a fuel system, cooling stack set-up, custom dry sump drive, wire in an ECU/tune...might as well only do it once.
The guys making 700-800 in their CTSV's look to be in street cars/weekend drag type things so I wouldn't expect it to last on a road course at that level. I'm planning on running a more modest power level close to stock but will be working it a bit harder on track. If it pops it's a good excuse for an ERL short block.
You could always run one of these pulley hubs an have a high/low boost set-up (turbo guys would laugh at you on the side of the road with an allen wrench though)
http://d3groupinc.com/d3-pulley-kits/
Crate Engine Depot has it at $10,795 but as far as I can tell this doesn't include the twin plate clutch which I've seen some others do/did. Either way it sounds like Fairway would look after you too.