The 292 has the capability to rev higher than the 261, thus the higher HP number. I highly doubt the torque of the 292 goes much above the published spec, it takes more compression to make more torque. Better breathing doesn't do much to the torque number, usually.
A hot 261 should be able to pull a stock 292, but a hot 292 will beat any hot 261.
However, a 261 fits better into an AD truck, and can be disguised to look stock.
If I had to do it over again I would use a 302 GMC, just for the cool factor.
Even a stock 261 is a good improvement over a 216 or 235.
