Re: 350 hp no problem!
Turbocharging is the way to go assuming you can package it. You run into a couple problems but they've already been stated.
1) Chrysler doesn't make tuner-friendly computers
2) Boost (and ultimate power) will be limited due to the high compression and lack of intercooler room
Plumbing a turbo system isn't that hard. Take it from a self-educated boostaholic. All of my vehicles are turbocharged and modified.
92 D-250 Cummins diesel (27 psi boost and 700 ft/lbs at 248,000 miles)
86 Shelby Charger (12 psi boost and more coming if I don't do a Crossfire)
65 Plymouth Belvedere twin turbo 440 (657 hp/742 tq and nearly finished with my EFI conversion)
There's no Crossfire listed because I came here to learn from current owners to see if I really want to purchase one.
I could probably handle the packaging issues with a little work but the computer would get a wee bit upset. That takes all the fun out of the turbo. As for lag, forget it. Tune your turbo sizing properly and it's no biggie.