The issue of "torque capacity" can be a somewhat vague spec, from what I've seen. Certainly, each trans design has a design-limit, but there have been some trans families originally meant for 4 cyls and V-6s in the GM 1978 intermediate-size re-design that went on to be behind engines with more power, by a good bit. Namely the Turbo 200 family! At one Olds dealership, many grenade as they came off the transport truck. Trans plant "sabotage"? We didn't have quite that situation where I worked, though. The engines usually had more like 120 horsepower, BUT then it showed up behind the Buick GN Turbo motors! A disaster? Not quite.
Why would Buick put that "weaker" trans behind their hot rod factory turbo motor, knowing full well what the cars would be used for? It, like some other components on the car, were used as they took less power to run, meaning more power to the ground. Most of the people who raced the cars weren't completely stupid. They knew the lineage of the trans and that it might fail, so when it started to, many had the gumption to get it "enhanced" before they got embarrassed by it. Sure, the basic design was still what it was, but with upgraded internal frictions and such, better reliability.
Even more amazing than that, one guy put a Chevy small block TBI pickup motor 350 into a Pontiac A6000 fwd car, with the existing T125 transaxle in it. Upped the line pressure, had some stronger axles built, and it apparently lived long enough for the magazine article on it.
In a "Two Guys Garage" segment, they did some upgrades on a Cummins pickup. Upped the turbo output, installed a Jake Brake, and also adjusted the automatic trans line pressure upward a certain amount.
As for the Daks, past the empty weight (quoted) of 4100 lbs, add the rated load weight, driver, gear, and even 4wd items and things can get past another 1000lbs pretty quick, which is "Imperial Territory". And then it's required to run up hills with all of that load and such, reliably. BTAIM
No doubt, as with rear axles, it's not particularly the "smooth application of power" that breaks things, it's the "shock loads" that do it. Sometimes, the metal used in the clutch packs and such that can be upgraded for additional toughness. Other times, it's the quality and endurance of the friction materials that do it, on factory line pressures. End result is that torque capacity is increased over the factory design levels.
The lock-up converter issues on the earlier 518s could have been due to the quality of the friction materials, the cost of such, OR the manner in which the converter was modulated. It's far easier to dismiss that whole assembly as "junk" or "weak" and not further investigate "Why" of the situation for a more specific determination. Obviously, Chrysler addressed it to put an end to their warranty claims on such failures.
As much as owners tend to over-load their Dodge pickup-chassis vehicles, the 618 was an obvious upgrade for those applications. Seeing one pulling a gooseneck trailer with 16 large round bails of hay is not an uncommon sight in many areas of TX many times of the year. Then, too, it was well-known of the weakness of poor trans cooling in their truck vehicles, from the earlier round-Ram models. One trailer magazine did a test and the Dodge was running about 250 degrees trans temp just running down a flat road at highway speed. FAR too high under a moderate load, to me. Obviously, more and better trans cooling was needed, but "not there" for some reason.
In the end, a particular trans family does have it's design power capacity, but that's in the "as produced variation", usually. Doesn't mean that some hard parts or friction upgrades can increase it.
Happy New Year!
CBODY67