Parasitic loss in an auto is no where near what your saying, even the huge c6 only looses roughly 5% power, I'm gaining more than that for torque so it still a gain. The 4.0 doesn't have the torque to spin big tires fast, that's my problem, I cant spin em up fast at all and in fact I can barely spin em up slowly, lol. 220tq 4.0 or 350tq 351, the choice is easy.
Strength is also a moot point as an auto can be as strong or stronger than the manual too.
I have rebuild a few dozen autos in my garage at home, it's no where near as difficult as some people think.
I always install at least a stage 2 shift improver kit when an auto is installed, then you set up at what rpm it shifts at and you can also get it to stay in what ever gear you choose. Say you put it in 2nd gear while parked then drive away and it stays in second gear. No shifty trans here, I hate that too. If you put it in drive it with still shift automatically but put it in any other gear and it stays there. I could even go as far as making it a manual shift auto where it doesn't ever shift automatically. But shifting is instant, no clutch pedal push or arm throwing to next gear hole stuff, auto shifts instantly with no power loss to the ground.
Also a trans cooler is an absolute must have and the largest one you can get your hands on. I always remote mount it so it's stays fairly clean and has it's own fan. I've been playing with outs for 20 years, there simple and reliable when built and cared for properly, same as any manual trans.
I used to be the manual trans guy too but after lots of trouble in deep mud and water and always having to shift at the worse possible times, I had it with manuals.
It's true the arguement can go forever, it all boils down to what a guy wants out of his rig.