Your dead right George.
Most people think methanol in it's self produces big HP, it doesn't.
What it does do is help control temperature allowing us to achieve tighter tolerances, as you mentioned.
The other big plus with these motors running methanol is the cylinder pressures that you can achive.
In my opinion, if you want big HP from these motors your better off working on their strengths.
For me that's high cylinder pressures not high rpm.
Methanol helps me achieve that.
It has a high flash point and more importantly a high auto ignition point.
One small correction mate, the engine capacity isn't unlimited we're capped at 1300cc.
Cheers,
Brian