Will a Stock 489 handle 700hp?

I know a guy running 9s in Dart with 8 3/4" foot brake car but its pushing it.
I have the same dillema as you and am leaning towards building Dana 60...

You can put billet caps on 489 but there will be some cost of machining involved.

You can get a Dana 60, brand new for $3k. I found them online. I paid $2k for a piece of crap 8-3/4 from someone in this forum. It eats pumpkin for lunch. It's stock but I can't even drive it now and have to save $3k on top of the $2k loss. If you have the choice, I would definitely go with the Dana. And I will never spend more than say a couple hundred bucks buying anything in this forum again. A $2k burn sizzles a long time. And I didn't even get to put my foot into it, I am still on engine break in.