The last couple of posts relate to water injection not water/alcohol injection which is something different.
As you mentioned water/alcohol injection (and the two need to go together) is used in the aircraft.  The power of a gas turbine (turbo prop) engine is very much related to the density of the fuel air mix going into engine.  On hot days where density height is raised power in these engines power can be reduced on takeoff due lower density of the air fuel mix - water/alcohol injection on hot days at higher altitudes substantially increases power for takeoff.
I guess that in theory water injection in a car engine is trying increase the density of the fuel charge like a intercooler does on a turbo but I would have though that as the air molecules cuddle up to each other the extra space would have just been taken up by no combustible water - maybe this just damps the "detonation" allowing an engine to run at extreme timing configurations.
Garry
				
			 
			
		 
			
				
			
			
				REMLR 243
2007 Range Rover Sport TDV6
1977 FC 101 
1976 Jaguar XJ12C
1973 Haflinger AP700
1971 Jaguar V12 E-Type Series 3 Roadster
1957 Series 1 88"
1957 Series 1 88" Station Wagon
			
			
		 
	
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