Ford 8in rear end with 31 spline axle shafts

There would be no notable loss of power with the 9" differential. The benefits far outweigh any possible negatives. Not to mention the selection of gear and part offerings for the 9" it’s a wise upgrade if you’re considering any performance engine upgrade. 28 spline is fine. Even 390 Mustangs and Cougars came equipped with 28 spline axles.