All computer controled motors are that way, de-tuned if you will. The issue is, least in the recent past, they have to function as well at one temp/altitude extreme as another, and on crapy fuel, and overloaded, etc, etc. Almost anything with a computer can have the fuel and spark curves turned for more power. From z28's to hondas to TDI VW's. And in the VW's case, it even gets better MPG too..
That's interisting about the C111. Sure would be fun to build one strong if one had really deep pockets.
And looking online, the powerstrokes had over 400ft/lbs since the late 90's. HP around 235 or so. I can tell you from personal experience, they will move a 2001 F250 4x4, which is a boat anchor, pretty well.
I'd bet faster than a w123 300D in a lot of cases.
"For the 1994-1998 Powerstrokes, the truck responded amazingly. In the mid-range, we achieved an extra 50 horsepower at 2000 RPM and a 100-ft/lb torque increase. Also notice that by extending the power band in the RPMs we gained an extra 25 peak horsepower. For the intercooled 1999 and up Powerstrokes, we gained even more horsepower and torque. With the Performance Chip, the Powerstroke gained up to 125 HP and 140 ft/lb torque over stock figures. "
Must be nice to be able to plug in that kind of power increase..