Agreed. if it's above 550HP, they will be limited to malls and red-light drag races or to "hard core off-roaders running 40psi" screaming "POWER"
most people running Raptors w/ a tune offroad are pretty damn close to 550hp & some over that (bhp)
The Raptor in stock trim running 87 octane on stock tune will still outrun its suspension, and if you go WOT through every single gear every single time you're in a Hellfat you'll wind up wrapping it around a pole too.....ever heard of throttle control? Restraint? LOL
Unless we're talking a purpose-built drag car on slicks & skinnies trying to drive on street or a vehicle so overpowered its too much for the chassis even @ modest RPM, there's really no such thing as "too much HP" within reason...
Risk of breaking stuff? Yeah I guess - again, if you have the restraint/driving behavior of a 7 year old lol! If anything a 707hp blown V8 truck (w/ adequate cooling) should be able to overland/offroad w/ ANYTHING & be as reliable or more so since compared to anything else running around w/ 100-200 less HP you're going to be asking the powerplant to work alot less than say, a tt V6 w/ 450-550 hp, or a N/A V8 w/ 550 HP or the smaller trucks w/ the diesels/V6's that are constantly being asked to deliver 80-90% of their max potential (again if you can muster the talent to differentiate between WOT & idle & realize there's plenty of throttle input in between those levels)
I'll sit on the sidelines & see how these things age/hold up before making any judgment though, in meantime - FORGET about a V8 Raptor & consider what a hybrid Raptor w/ 600+HP & electric motor in front diff assisting in AWD would be like......