There is a power increase from water alone. The reason you can make the increased power with the water alone without hurting your headgaskets, is because the increase in power comes in the form of an oxegen enriched environment. The water acts to densify the incoming charge air for an increase in oxegen molecules per a given volume. Since this is not going to burst on it's own anymore than the natural air in the cylinder prior to injection, it will not cause an increase in the effective timing advance as would be the case with drugs.