We had a Viper come in with exhaust valves burnt to hell, but no signs of detonation damage etc. It was tuned with high boost and compression, but very little ignition timing. Now the fact that you run E85 probably gives you a lot more leeway in needing to worry about EGTs/detonation. I also agree that running rich isn't a cure for much of anything (And I mean pig rich...not 11.5:1). However, I also caution that from a flame propagation perspective, igniting at the proper point in the revolution gives you the best conditions for ignition. The mixture is at it's peak state of turbulence and has the shortest distance to propagate burning. Granted, no ignition timing with infinitely fast burn speed is ideal, but impossible. Adding timing does make it harder for the piston to rise as it comes near TDC, so that's why reducing the ignition timing doesn't hurt as bad as you'd think. It's another reason for the extra power LS motors make over built smallblocks with many other factors the same...they require less timing.
I guess I look at it as an OEM typically does (or at least do now). You can make more power on a given setup by running more boost and less timing, or running more fuel to cool the chamber, but it's all taking the engine away from it's optimum operation. This is a good way to do it when you're starting with a stock motor or other budget option. However, If I building something from scratch, I calculate to an operating point I anticipate reaching (infinity HP usually). I have made calculators I use to size turbos (hot side and cold side), piping sizes, and have some others to help me with cam/compression ratio selection. These tools are similar to what Garrett and Borg Warner have recently released, but allow me more customization. The nice thing about E85 is that it's so damned tolerant of everything that you can pretty much get the best of all worlds. Run a big cam, high compression, high boost, and optimized tuning. It's magic juice.
Lastly, running extra boost usually makes your exhaust backpressure ratio go up, diminishing the volumetric efficiency vs. ideal. Effectively, you are making your engine/turbo pump more air at a given power level when your tune isn't ideal. So by running a ton of boost and less timing, you are compromising this. As I said, I think you can make more power this way, but it's sorta taking your engine away from its happy place to do so in my opinion. I also would say that your turbo's headroom has a big effect on this. If running more boost still has your turbo in an efficient place, I'd imagine the negative effects of high boost/low timing would not be nearly as detrimental as if you're pushing a stock turbo to the edge to get that extra boost. I'd like to hear Tracy's take on all of this.