At the time, I think this was considered a high specific output. They did it by increasing the boost, fitting larger injectors, and altering the cam and injector timing. But since the engines aren't common-rail or electronically controlled, there is a limit on how much of all that you can do. 1hp/ci is about it.
As far as how long they last, you'd have to ask a DD mechanic. So much of it has to do with how they are treated- run regularly, not overpropped, maintained carefully, etc. Another way of saying it is that there are probably 8v92 naturals out there that are all used up at 2500 hrs, and turbo ones that are still strong at 4000- so much is in how they are cared for, like any piece of machinery.
For a long time, big DDs (the two cycle ones) were pretty much alone in the marine market. There wasn't a lot of competition for them, especially over about 450 or 500 hp. As boats got larger and needed to go faster, DDs just had the pressure and fuel turned up. Not a great long-term strategy, but it was what they had to work with. Later on, DD/MTU built some very good four-cycle diesels, some of which are still around. I think emissions did them in, but OBX charterers used to LOVE Series 60 DDs.