Mark, I noticed that you used the terms "detonation" and "preignition" interchangebly while they are actually two different things. I'm sure you know the difference but there are many that do not, so for them...
Pre-ignition, as the term suggests, is the ignition of the fuel-air mixture before the regular ignition spark from the spark plug. If the regular spark occurs shortly after the pre-ignition, the colliding of the two flame fronts will cause a pinging noise. Preignition causes loss of engine power and can cause severe damage to pistons, rings and valves.
Photo of Pre-ignition damaged piston
Abnormal operation may allow combustion pressures to develop so fast that the heat and pressure will "explode" the remaining unburned fuel. This produces the knock, often called "ping", carbon knock, etc. Actually this is detonation. The knock results from the violent explosion when the normal flame front runs into the secondary flame front. Detonation will cause piston and ring damage, top ring groove wear, scoring, sticking rings, loose head gaskets and possible complete engine failure.
Photo of detonation damaged piston
Article:
HERE
But I do agree with you that if you can control those two factors through fuel management, timing, etc. the sky is the limit for how far you can push an engine...as long as the engine is capable of withstand the HP that is being made.