The lack of torque on a 170 could be made up with deeper gears in the trans while spinning it higher in the rpm range to make the hp, if you can make it run clean at the lower RPM's. For example, use an AR5/MA5 with it's 3.753 first gear and you wouldn't notice the low end torque loss (as much?).
That's what the OEM's are doing now anyway, lot's of gear in the lower ratio's and lot's of RPM to make horsepower.
No idea what you would have to do for an auto, though, maybe the a 6L60E, TCI 6 speed or a 700-R4?