Can a vehicle have too much horsepower?

Other than in all out racing situations where more power is never enough, can a normal car have too much power?A case could be made that my 1994 dodge ram 4wd with a turned up Cummins is a bit too fast.Its pushing 310 hp and 686ft-lbs to the rear wheels on the stock turbo.With the mechanical control its very touchy in town,requiring delicate throttle discipline to keep it within the speed limit.That being said the egts spike whenever I try to use that power on the highway.Passing single vehicles is kinda a waste of time because it pulls so hard that by the time your safely around someone you are well into the triple digits.It however, blacks out the highway and the egts are pegged.So it needs a bigger turbo to clean up the top end which in turn will give it even more power.It moves alot faster than a 4wd, solid axle, heavy brick should.My 1984 Nissan 300zx Turbo has 200 hp but it weighs about 2500 lbs so it goes fast enough to get you thrown in jail in the states.I got it after a carport collapsed on it so its rear end is an aerodynic nightmare so it can only do 115 mph(GPS verified) out of its original 150 mph top speed.It however is more fun to drive than say my dad's 2013 chevy corvette Z06 because 10 seconds of WOT fun in it, will be enough to throw you in jail anywhere on the planet,my Z can actually be at WOT for a little bit without immediately going to jail.Now for the part that's actually relevant.Eventually, my 73 plymouth scamp will have a fairly hot 318 that's expected to push out around 400 hp,with a 5 speed manual, with a rear end ratio of 3.90 or 4.10 and 10.5" wide tires,at what point do I reach the point of diminishing returns where more horsepower just results in tire smoke without going faster?