Stuff below is opinion/experience/educated guess. it's not locked in stone, just my best 'take' on things at the moment.
The invisible flame is no small concern. It doesn't happen every day, but I've seen a number of fires during pitstops (on tv) - and they don't realise it's on fire, until they just barely catch the heat haze 'ripples' in the air above the car. One time i recall the first sign the pit crew had was the driver flailing about (not injured thanks to safety gear/apparel)
Although it is higher octane, that alone isn't the whole story. It's octane rating aside, the latent heat of vapourisation (heat sucked out of the surrounding gases to enable a change of state into a gas) sucks enough heat out to prevent detonation in and of itself in a lot of cases. The fact it requires about twice as much fuel for any given amount of air (vs petroleum based fuels), there's a hell of a lot of it in there, and the cooling effect is far greater than would otherwise seem likely.
Aside from the higher compression/boost that could be safely used, the cooling effect of the methanol also means that the air/fuel that finally gets into the cylinder is cooler and denser - so even without boost, there's relatively more cylinder filling. (it's still about the same VE, but it's denser charge at that given VE)
The cooling potential itself is significant enough that drag racing engines can use it to help keep the engine cool enough to complete the drag race itself with a grout filled block and possibly no coolant at all.
In champ car (and prior to that, I think indycar, basically before the 'split', not sure what IRL use any more or the state of play of either of those categories, I haven't watched it in years) they aren't allowed intercoolers, but they are allowed an additional injector in the plenum area of the intake manifold - this extra injector sprays methanol during peak boost situations. It's placement further away from the cylinders means it cools the charge entering the plenum, i.e. it has more time to do it's job than the injectors nearer each intake port. And it does it very effectively.
Rather than going any of the options - how about a middle ground option - run standard (albeit high octane) pump fuel (which won't break the bank) and one boost setting, and for the competition days, run methanol injection (basically just 'water injection' but run more methanol - 50% or so) so that it prevents detonation and allows more boost safely. The good thing about methanol is that over and above the need to run twice as much (compared to petrol) - you can go way richer still and it'll still run well, so you have a lot more cooling effect available, a bigger safety net.
You could of course run straight methanol as the aux spray, but it can only go so far as an anti-detonant, after all it can still burn, so eventually you'd reach a point where it'd see pre-ignition or detonation, no matter how much methanol you added. On the other hand, straight water isn't flammable, so you can add more and more and suppress detonation. Of course you eventually get to the point that there's so much water and (due to higher and higher boost that the extra water allows) heat, you eventually reach a stalemate as more water (assuming it doesn't first lead to misfires or incomplete combustion) and boost don't return any further gains. In general the ww2 era testing of water injection and various ratios of water and methanol, they concluded (in big military aircraft engines that produced huge outputs) that more methanol would tend to allow the greatest peak power (when you ramp it up, and the boost with it). The straight water wouldn't make the same power, but it would allow the highest boost/compression safely without any danger of engine damage. These engines were routinely tested to destruction to see just where the limits were. There's some decent info (albeit not the easiest to interpret if you aren't an engineer, and I'm certainly not!) on the 'NACA' archives website:
naca archivesNACA was basically the predecessor to NASA and the reports/papers on that site contain the bulk of their developments
They tested water injection rates ranging from about 1:10 (ratio vs normal fuel delivery rate - i.e for every 10 litres of petrol, 1 litre of water sprayed in) right up to 1:1 and beyond (for the record, as far as I can recall, they actually cited ratios by _mass_ not volume, so I'm approximating there).
One thing they did note was that at higher levels of water (i.e. closer to 1:1) - with big bores, hard cylinder sleeves and hard rings, all of which see a little more blowby - well they found that the oil was contaminated by water to the extent that it'd have to be replaced frequently.. This should never come up on a street care with more conservative amounts of water added, but worth a note.
Last little tid-bit from the naca stuff - which is a cool thing for most of us. What they _did_ find was that the use of small amounts of water - let's say 1:5 or so, then all the cooling/safety that was previously done by running a very rich mixture under boost, well that could be replaced with water, and the fuel leaned off (relatively speaking) with no loss in power or protection. In other words - if an engine running 10psi needed an a/f ratio of 11:1 to stay safe, and at 11:1 it was using 3 litres of fuel per minute, well if you added sufficient water, you could drop the fuel back to 12.5:1 (2.64 litres per minute down from 3) and get the same power, same safe running. You'd never go down to true stoich in practice as it would start to drop power. Then again, you _could_ do it if economy with a certain output was needed for whatever reason. Water is of course practically free, so it can pay off to consider it. Purely for trivia sake, the rate of water to add would be about 0.29 litres (since it's by mass, and fuel generally has a lower specific gravity than water)
You can 'sorta' get nitromethane, it's used in some model engines (usually in a mix of nitro, methanol, and some small amt of trans fluid or similar). It's easily the gateway to big power. Since it releases oxygen to be burnt during the power stroke, it can supply it's own air, and practically run off itself alone. That is a situation that allows you to run ridiculously rich and get more and more power..The trouble ith nitromethane is that it's far more susceptible to knocking and detonation (and even pre-ignition). Yes the potential is there, but you actually have to run lower compression with nitro (assuming you actually use a decent amount of it) than you would with any pump fuel and way way way lower comp than straight methanol would like. This can't be overstated as it means you'd have to theoretically build and engine to get the right result, which would be very ordinary if it was later run on petrol or methanol. blown alcohol drag engines can run over 11:1 compression and massive amounts of boost. Top fuel, which run nitro (and it's percentage is down a fair bit these days to try and keep them from going faster/harder than the tyres can endure) tend to run anywhere from 6-7.5:1 compression depending on the weather and god knows how many other factors.
Aside from it's volatility, nitro (since it's releasing oxygen during the process, and a hell of a lot is in there) takes a long time to burn (compared to other fuels). This means to get the 'right' amount of push on the piston, they need to run a hell of a lot of ignition advance - 50 degrees isn't a lot by top fuel standards, more in some cases. You'll see that some of it's still burning as it leaves the exhaust pipes on dragsters. So much of it is burning, that if you watch them, and the engine drops a cylinder, the thrust this still burning fuel produces is enough to push the cars slightly sideways to the 'weak' side if one of these 'jets' drops out. Not enough to launch the car, but a considerable enough amount. The reason I add this is that the zoomie pipes on dragsters are there for that reason. It's also the case that since the gases are still burning and expanding, traditional extractors won't work too well, they only end up clogging up the exit path relatively speaking. Which brings it full circle. this still burning fuel will be a massive issue to the turbine of some turbocharged application. The exhaust wheel will be exposed to far more heat energy. Probably enough to wreck them with extended use. Obviously it would depend just how much nitromethane was going to be used, but I'd doubt that any current turbo would last more than a race weekend (if that) on 80% nitro (not that there is actually a category for such high amts of nitro and turbos).
If you were just spraying something like 10% nitro (vs total petrol usage) for drag racing (and the rest of the combo could handle it) I'd not be too worried about the turbo surviving it.