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Exhausts of up to 4" are being used with no ill effects, our diesels love a freer flowing exhaust. 3" plus a free flow muffler will give you some added horspower.....slight noise may be a side effect.
You sure can, and I highly recommend it. The bigger the exhaust the better with these engines. Of course you're limited by the space between engine and frame as well as the triangle formed by the crossmember/tranny/floor.
From what I understand you can buy a 3" kit from Dynomax. Several folks have and they have been quite happy with it. The only problem I had with it (other than the price tag) is that the design of the Y-pipe didn't look much better than the stock one to me.
Another option is to buy a kit without a Y-pipe and then build your own. That's what I did. I used an ATS Turbo 3" exhaust kit that I picked up cheaply. I cut up the crossover pipe to make my Y-pipe, but it would have been just as easy to build using the downpipes from a stokck Y-pipe if I hadn't had the crossover pipe to work with. I have some pictures in my Gallery, plus here is a link to a thread I started about it. https://www.ford-trucks.com/forums/5...exhausted.html
Rezvani's Latest Post-Apocalyptic Monster Is a Ford F-150 Raptor Underneath
Slideshow: Called the Fortress, the 850-horsepower pickup combines Raptor underpinnings with military-inspired features, survival equipment, and a starting price of $285,000.