Stock turbo will handle level 3 without problems if the WG off feature works. He will need more boost to keep the EGT's in check and use the extra fuel. The WG off feature on the Smarty does NOT work on all trucks so do not rely on it without gauges to verify.
He wll see the highest EGT's in the upper rpm ranges and thats where the extra boost will keep things in check. If towing in lots of hills and letting the trans shift as normal its gonna spike it all the time. If he can keep the rpm's down and minimize the shifting it will work great. A lot will depend on weight of the trailer and the terrain.
With a little attention to rpm's you can minimize the impact by crimping shut the WG controller line to make sure the boost will build. Keeping the rpms under 2800 for any length of time will keep the EGT's in check and the boost should max around 35-37 psi which is within the turbo's capabilities.
There is no substitue for gauges, but, based on what I have seen for the last 100k turning off the WG one way or another and judicious use of the right foot will allow a relatively safe use of level 3.
Keep the TM at 2 though when you load the program. Anything more is death to the stock trans and even on 2 do NOT let it short shift. Don't feather the throttle on acceleration, mash it and let the sloppy fluid coupling protect the trans. Use TH and plenty of throttle and it will help keep things safe. The turbo is probably going to woof at him on the OD shift lock but that is preferable to slipping the TC or direct clutches.
FYI, running rail pressure on 3 will help with the smoke also and give it bit more bottom end. The drawback is it will be cruising at 19k rail pressure and if there are ANY issues with injectors it may push it over the edge. I have run #3 TM 3 RP 3 for over 30k and towing at GCVW with no issues and excellent results. Keep in mind every truck reacts differently and YMMV.
My . 02
