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I've heard nothing but bad things about the 408's being light on power and torque.

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Who ever said that never owned one. I had a 402 with untouched magnums (chevy V6 springs)and air gap intake TTIs and a really old crane 284 .480 cam and even with the 2.76 gears it was incredible and cost about $2000 buit it myself I have never heard any one disapointed with a big inch small block. They make great power especially for there size, when combined with a 904 they can knocks at least 200 lbs off a BB and that can make a big differance in the way a car drives. A 500 BB needs aftermarket heads or it won't be any faster than a stroker SB. Stock Magnum heads flow as much as a stock BB head and have WAY better chambers, wet flow, swirl, and velocity. Even the open chamber LA heads flow almost the same as a stock BB head.