Correct, the key is compression or in this case being compressed, not so much latent temperatures.
Having an homogenous mixture with a faster flame front, under the appropriate controls in and as part of the entire system obviously will typically net higher efficiency Again, as you know from Pgpro's project, that, as in the article linked the in post above, compressing the atmosphere for higher volumetric efficiencies make for larger gains under these principles.
From the article: Once an engine is developed that operates ultra-lean, is turbocharged—or super-charged—and is better able to withstand engine knock, engine downsizing while maintaining performance becomes a credible option that can lead to significant additional fuel economy and performance benefits.
—Beister and Smaling
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