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I did understand your Idea, I'm just not convinced that compressing the exhaust will gain you anything but extra losses. However while compression doesn't add any heat maybe it is necessary for operating the engine at higher rpm's due to the water instantaneous conversion into steam. Admittedly I need to find and read my thermodynamics text book before debating my point anymore, I don't remember much about steam. Even if I do find my text I probably would not fully understand this particular setup because its not a normal steam cycle. The heat for making the steam comes from a gas that is also mixed with the steam during expansion. This complicates it because the water heats and turns to steam as the exhaust gas cools and contracts.
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