Quote about the 1996 7.3L Ford diesel: "...Not saying they don’t do work, they do and it is a fine engine. It doesn’t mod well until you get into the 99-03 model years with the learger and intercooled turbos and larger injectors, it also got a power bump to 250/525 those years."
Since your post was to set the record straight, I might note that the 7.3 Powerstrokes from '94.5 to '99 were supplied from the factory with forged rods that allowed the engines to be souped-up to the 600-650 RWHP range without other bottom-end work. Of course, the top end would need mods as you noted: chips, larger injectors, intercoolers, turbos, and other "stuff" the big-power crowd likes to put.
In contrast, it was the later 7.3s that could not be boosted that high without big bottom end work in addition to the requisite top-end work due to the powdered metal rods the factory chose to equip them with. Those poor guys can only get to around 500 RWHP without fear of a rod letting loose. I feel for them. :-)