imo water injection is a bit of a bodge and needing it probably points to inadequate charge cooling...
I'd only ever turn to that once all other methods have been exhausted, IE an intercooler the size of the moon and water->air charge cooling.
You should certainly never plan to use it as a normal thing...
As for pushing the K03 to ~20psi, i'd really like to see where that ends up on its compressor map... i'd imagine you get to a point where the extra psi's doesnt actually give you any more power due to the manifold/chargetemps/turbo efficiency etc all being inadequate. IE the example above 21psi producing 198hp, if the turbo was still as efficient as it was at 8psi you'd expect that engine to be producing 230hp+ at that boost pressure, you probably find if you dropped the boost to say 18psi, your power wouldnt drop by much or at all, yet your turbo life would be extended and the intake temps would drop, making the whole package safer.