That is ridiculously powerful but with a twin turbo setup on an LS7 I believe they'd have no trouble hitting that. As far as dropping it back to 800hp I wonder if they sell you a tune and the device to load it. I can't imagine you can just drop the PSI on the turbos and have it not run like shit.
I do think its stupid that they advertise the car will do 242 miles per hour. More than likely the gearing limits you to somewhere well south of that unless they've replaced the rear end. Even if they have, that car is not set up to do that kind of speed without spinning off the road. The cute little ground effects package they put on there will probably make it lift off.