727 vs 904

The 383 two barrel trans only has 3 frictions in the direct clutch; just like small block 727s; that's the weak point. All other bb trans had four direct frictions except the hemi; which had five. I build 727s with six direct frictions for over 1,000 horse all the time; and 904s with five (which is what it takes to handle 500 horse); red eagles of course.
I fail to see how you could build a 727 to handle 1,000 horse and think that it's weakness is that it only hold 3 clutches. At much less power than that you should be using an aftermarket drum which in all probability will hold plenty of clutches. Add in the cost of that drum, and an aftermarket roller clutch, and good valve body plus labour, etc, you could easily be at or better than $2,000.00 imho.
The main weakness on some 727 is an aluminum front planetary that will strip the splines.