That is definitely correct Tom. Maybe I should have worded that a little differently. Point being, at those torque levels(WAY over stock), it doesn't really matter if the power is coming from nitrous, a turbo, or an angry hamster wheel, the stock diff isn't going to take that type of abuse.
I'll tell you what though, riding in Jim's(BeyondloadedSE) car the other day while cruising around, the torque is almost instant upon WOT, even at ~2500-3000 rpms. Even with those big heavy 19"s, he was spinning a bit in 2nd. With the bottle, I would only spin slightly in 2nd, although I was about 50-60wtq lower than what Jim is at right now.
Either way, both are fun as hell if you have a motor and tranny that can take the added power!

Mark