Often the reason EGT is a bad indicator is that at WOT when you are at 11:1 or so A/F there is still residual combustion happening in the exhaust especially at higher RPM. All the fuel just doesn't get burned up before the exhaust valve opens.
1700 is not really a worry at 11:11, but 1500 might kill your motor at 14.7:1. I think this was Scott's point about partial throttle high load situations being potentially far worse.
If your oil and water temps are OK and A/F is appropriate for a given load, EGT isn't all that important. Spinning fast but well within their design limits does not hurt motors, lean conditions at medium RPMs under load causing detonation will.
Think of it like pedaling a multispeed bike. You are far more likely to injure yourself straining in a higher gear than moving freely and faster in a lower gear going up a hill.
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