My devilsownonline.com kit also caused detonation easily. Fortunately, the pump is adjustable. I mounted it just behind the core support under the hood. The detonation is obvious, the engine will actually lose power.
I cannot imagine ever needing more than 150 psi. I'd have to be making a lot more boost. My adjustment method is to drive around town and pull over when i got detonation, then back off the pump pressure. I use an Allen wrench to decrease or increase the psi output of the pump. Everything is very adjustable so i have total control. Never have to worry about damage because i can always adjust.
When it is hot outside, you can make use of more pump pressure at lower RPMs, and run straight water. If you use tap water like i do, you may want an extra filter, as i have 3 on my system between the pump and injector nozzles. When it is cold out, you have to back off the usage at lower RPMs and the amount of pressure, and mix in alcohol (windshield washer fluid) in my case.
I've made the mistake of letting straight water sit in cold weather. Even upper 30s will turn it to slush so you have to wait for it to thaw. Also, the frozen water will expand and possibly crack a plastic tank.
Yes, straight water will still cool a good 200 degrees. Detonation is the biggest concern you have to be wary of when using water/methanol injection. The amount of timing it adds will be noticeable, even by ear. I've never heard of it being enough to blow a head gasket, but is suppose that if you were running a ton of it, maybe dual pumps or something, it could be a problem.