Did you actually hear that from someone or did you just make it up? If you can provide some factual information to go with that I'm interested in seeing it.
The STi transmission and axles are beefy as hell and will absolutely take that abuse. I don't know if they will take crazy crazy high HP, but it will most certainly take 400whp abuse like a champ. I've personally seen several 400whp STi's make tons of track passes spinning all 4 wheels each launch and never had a problem.
400whp seems a bit low for a water/meth 35R setup. Good kill although his shifting has been well documented throughout this thread.
I wasn't as woried about the horse power level as much as dumping at 5K