Yeah. Somewhere there's an appnote describing the type of test setup they use to measure dissipation -- it's something like, nucleated boiling freon at 25.0C. Meaning, not only is it refrigerant under controlled temperature and pressure, but they're actively stirring and frothing the stuff, so that if the teensiest, least bit of energy flows into the liquid, the already-seeded bubbles expand instantly, absorbing that heat as phase change.
Or to put it another way,
When they say "case" temperature,
They mean the whole case, and they mean Twenty Five Celsius. Period.

Useless? Oh, you have no idea. But, apparently everyone does it, so...
Much more realistic numbers are 50W for TO-220, 100W for TO-247. And that's still being rather generous, assuming very thin insulators (or none at all, just grease), with semi-realistic heatsinking (generously sized for convection, or a cake walk for water cooling). With simple heatsinks and Sil-Pads, more like 20 and 50W respectively.
So, yes. Quantity is your friend here. The overall size of silicon used in a device hardly matters; you do need a big enough die that it doesn't burn itself up from 2nd breakdown (which IS a thing with MOSFETs, now that they're as power-dense as only BJTs used to be). You can shop for "Linear" FETs (IXYS makes them, and a few others), or just keep flipping through datasheets until you see a DC SOA big enough (if they only go down to 10ms and not DC, keep reading!*).
*Strangely... most manufacturers of IRF740 do not provide a DC curve. For instance, the current issue Vishay/Siliconix sheet does not. The ST datasheet, issue June 2002, does, but this was removed in the August 2006 ("obsolete") issue.
From my own testing, the Vishay/Siliconix device has a DC SOA substantially beyond what it says (either RthJC typ. is half what the max. says, or Tjmax goes over 200C!), and the silicon die inside is quite generous given the device ratings (easily 3 or 4 times a comparable 'new design' transistor of the same ratings), while costing the same price -- or less. (Which just goes to show you how much cost goes into making the masks and NRE and everything, and how little goes into the silicon material itself. It's that cheap to just keep on cranking the same damn part, 30 years later!)
But yeah, as for loads, either use a massive number of transistors, or ballast it with resistors. I designed a nicely featured one for a battery reconditioning company; I'll drop in a link when we get some press release action going. (And hey, if there's enough interest, that's always nice to speed things up..

)
Tim