But clearly at the cost of boost control!
Torque is what kills rods, not outright power (to a limit obviously!) if mapped properly with correct boost control there is no reason why a K04 should bend rods just like that. There are quite a few guys on VW forums running K04 setups on 1.8t's with stock rods with no problems, still on stock management. For all it's apparent faults the N75 system is very good for low down boost control.
As a direct comparison a friend of mine has a Mk3 golf with an AGU in it running a Qpeng mafless plug and play ECU which came flashed to a stage 2 map direct from Qpeng. It made 238bhp on an manual boost controller, ran for just over 4000 miles and bent it's rods.
Another 'friend' of mine from the same forum has an AUM in a B3 Passat estate, running on Bosch with a set of golf clocks etc, which has a K03s hybrid and runs at 249bhp and has had his engine fitted for 15K+ and it is perfect.
I'm not saying rods aren't a good idea, but it I wouldn't think it's true to say "if you have any more than a K03s you need rods" because that isn't always the case.