Yes, a 9" IRS rear would be better than the 8.8 but......
Road racing doesn't put the strain on a rear like drag racing would, as you know. As an example, on the west coast in particular, many true track-only 600+ HP FE Cobras actually run the Jaguar rear end with good luck. These are both original Cobras, few in number for obvious reasons, and a slew of high end (Contemporary and those South African Cobras, the maker's name who escapes me just now) and true kit-car Cobras. Some are in historic races where driving is at say 7/10 ths or 8/10 ths. Still, others, and mainly those non-original Cobras, are beat to hell in real go-for-it 10/10 ths racing and the rears hardly ever break. These on true sticky race tires on big name tracks.
Also, there are many drag-only 8.8's at near 1,000 hp that do live in drag racing, See any 5.0 Mustang site where turbo'ed , blower'ed and NO2 injected 302-400+ Windsor engined 'Stangs regularl turn some truly amazing low e.t.s. Soft-Loc clutches, expert clutch tuning and the sometimes 'Glide equipped cars admittedly help to lower the strain compared to the old days of non-slider clutches, for sure. Also, as the hp keeps going up, admittedly most eventually switch to the stronger 9".
I do think the cheaper 8.8 would be more than sufficient unless you also plan to drop the hammer in true drag race fashion. JMO. 'Course the IRS 9" would be better but it will come as you know at a price. Would like to see your fabrication of the needed parts as the project progresses!
Btw, here's a local Cobra running under the SCCA banner at Elkhart Lake. WI with a dyno'ed 660 HP detuned Roush 358 NASCAR Cup engine. Rear-end? A Jaguar based IRS ala' the original Cobras.
http://www.youtube.com/watch?v=95E9B6zPzuY