He's partly right. The turbo can go to well over that, but the device won't produce real hp without over speeding.
Bigger turbos are really the only way to go.
If you are on a budget like most sensible people, there is a compressor map which allows you to taylor the engine combo to the characteristics of the TO4 B turbo. It basically rules out running any more than 16 psi. Colin Townsend got 400 hp at the rear wheels with 28 psi and a TO4 in his propane 265 VG Valiant.
In the 80's, little split pules T03 60's like Commodore Turbos and AIT Turbos had could be worked to 360 hp, but they are really to small for drag racing.
The Sierra RS500's/Merkur Turbos ran T04's and then the HP race was on, way over 500 hp with ease.
The T04's, in A, S or B trim, are very good at giving 400 plus hp, but on a six, there is little point in having them go over the 12 psi level, especially if it is to see street duty.
Basically, bigger GT40 and Hybrid T45 and T66's are the go, as they have proper ball bearings and don't fry up as easily. The GT40 turbo is a stock XR6 Turbo bit. Its way over sized in the Falcon, and can take 500 hp without any alterations asside from putting forged pistons and good rods in the engine.