strength of open diff 8 3/4?

I'll have to let up when the peg leg starts smoking
No, you better let up sooner. And put fresh good oil in it.
Here's what can and often does happen, when one wheel spins;
The first thing is that the spinning wheel is doing double whatever the speed-O says.
The second is that the differential case is also spinning double-speed.
And so, the oil is flung off the parts and heat starts to build on the cross-pin which at first just scores ,by transfer of metal, usually from the two pinions to the cross. Maybe you get away with it a few times.
Eventually, one of several things can and will happen;
the Pin will hammer out the pin-saddles. tear off the anchor-pin, and try to exit the Banjo out the back. I've never seen one come all the way out, which is a good thing cuz the gastank is right there and gas is allergic to hot flaming metal. But they do come part-way out which locks the rear up solid. If this happens at speed. you will very quickly be in a spin, and there is almost nothing you can do about it..
The other thing that happens, if the cross-pin does not come out, is that the pinion gears seize to the crosspin, making the diff act like a spool.
In both cases, at the worst, the guts are all junk. And you got to get a specialist to weld up the hole in the banjo.
At the best, if you can get it apart, maybe you can save the Crown/Pinion, and the housing

So then, my advice is to post up a want-ad for a SG, and get it set up.
If you have skinny tires or a small-tub car, then have it set up at about 90 to 100 ftlbs turning torque with the fluid you need to run and the correct ratio of Whale-oil .
If you have a stout 360 and enjoy sliding around corners, you can go up to 110.
If you have a big-tubbed car with 295s on it , then up to 120 but not more, or you will be back to spooling it.