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Those kits are primarily for knock suppression. They cool the intake charge enough so that it doesn't spontaneously combust on the compression cycle, prior to being ignited by the spark plug. Alcohol is mixed in primarily as an anti-icing agent - that it is also combustible is kind of a plus for fuel economy. Kind of.
As connecting to a 2004 Toyota? Best bet would be to place the nozzle right before the throttle body - the transition from atmospheric pressure before the throttle plate to manifold vacuum after the throttle plate will serve to evaporate some of the water injection spray, lightening the remaining water droplets to more easily flow with the intake air. It will also cool off the intake air.
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