I'm unqualified to say if the 300 has a piston issue under nitrous oxide. I do know most 351 Windsors I've striped have had cracked pistons but still driven just fine. It is likely that the stock 300 has a lessor factor of safety than a 302 does because its primarily a low rpm engine. A 302 has varied from wild 4V GT, to lo-po plodder, then to wild 4-bbl the 5.0 EFI street screamer. As a result, 302 and 5.0's have had a lot of develoment work done on them with some very solid pistons over the years.
The 4.9 six is a low compression plodder which was never designed to go over 5000 grand with those pistons.
When I look at this happening on Wildjohns stocker, I'd make sure I'd never go over 50 hp shot, and dial the ignition back by whatever means.
I've seen records of Jay Storers 1932 Coupe with a rebuilt 300 with turbo runing 9 pounds, and propane, blow a gasket, and then live to do a 12.9 second qaurter in a 2800 pound car.
And 1000 FrenchtownFlyer passes with a rebuilt 300 in a wild state of tune.
If it were me, I'd beg steal or borrow a stock rebuild but with added forged pistons, and dial up 70 hp and 125 lb-ft of torque from an emissions legal truck.