The benefit of water injection is that you can get cheap fuel(meth) in the form of winter windshield wiper fluid, and lean out your top end, or any end that the WMI is spraying at. Water as a vapor may help, but it's the phase change that sucks out the heat, and allows more timing/boost/whatever. I don't know if the steam would do much as far as absorbing heat, but I know it would absorb space.
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