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Ken Miles even made fun of the mustang by calling it a secretaries car. After the camaro came out in 67 Ford decided to make the mustang a hot rodders car with the 390 engine option.
I agree that it was recognized as a secretaries car, which is why the 289 HiPo and GT equipment group options were introduced, much earlier than 1967. As far as the Camaro comment, I don't think that it happened exactly that way. If it was after the Camaro "came out" in the fall of 1966, the 390 would have not been available at job 1 of the 1967 model year, which it was. Having engineered a few items for Ford and GM that went into production, I can assure you that the planning and design efforts to support the first 390 in a production Mustang in August-September of 1966 would have been well under way by the fall of 1965, if not before that. There must have been enough intelligence available to get approval for the plans, and that intelligence might have included some knowledge of what GM was doing. It is pretty difficult to keep secrets for long.
 
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