VF started working on theirs as well. The motor will handle an SC, the internals are pretty damn stout. Look at what the E46 M3 has done, it is a high rev, high comp motor as well.
Since the heads on the M3 flow so well, the gains with boost will be awesome.
I am not worried about the motor handling 5-7 psi, I am worried about the DCT coping with it. It is possible the DCT can be strengthened, but supposedly it is sealed for the lifetime. Time will tell on this one... VF's shop car is a DCT by the way.