Sounds like the guy you talked to is an old timer. When I was young we ditched a lot of good 904's just to say we had a 727. What a dumb move. Unless your building a "balls against the wall" sb your better off with a 904. Why, because the 727's rotating mass is heavy and it consumes about 20 hp more just to spin it. If you don't mind giving away 20 hp go for it. Nowadays since we all learned that 904's aren't the great evil of the world guys run them in their race cars. Have a buddy running one in his 67 Cuda that goes 9.90's
Don't take it I'm knocking a 727 cause I love them. Have been rebuilding them since I was 17 and I'm 50 now. They are a great heavy duty trans and in a work application hard to beat. But in a street application of no more than 500 hp all it takes is a properly rebuilt 904 to do the job and do it more efficiently. Jus sayin