The NOS setup you mentioned originally might not be to bad of a solution. You don't really lose the fuel economy for having it lie dormant in your trunk. Also, a nice S/C would work too.
But back to the question, IMHO, running low 12s, with street tires is nice. That will put you probaly 11.7/8 with DRs'. I also think that after about 500hp, you will be spending a lot more money to get the power to the ground on street tires than it is worth.