having watched this thread, it seems like a case of "turbo fear/knowledge itus" Oil cooled turbos are fine. Marco and I share a history of those, as well as Wes. The situation is very similar to owning an 80 and the situation with the front diff. Once you know the situation, you just try never to overload it by pulling / stressing backwards.
My last high hp highly tweeked oil cooled turbo ran at 21 psi, with no intercooler, and was driven on the street. a little idle down at shut down worked just fine. Even my spouse could remember it.
That being said, I think I would have to say that putting a turbo on a stock motor over one that came with one stock is a pain in the buttocks.. I almost did this with my 240. It would have been much better to find a parts 240 turbo and do the swap with a re-build.
I don't think you need to have more than 6~7 psi on the street on most motors, and I think Marco is dead on. 3500 rpm and above is what makes a turbo worth it.
Plus, there's the fuel efficiency issue. A turbo when sized correctly, will not effect mileage on the highway. If you know when your turbo spools, and stay below it, you will usually see an INCREASE in fuel efficiency.