Methanol has a much higher latent heat when burning, which means it burns cooler than petrol does so it lowers combustion temperatures as well as increasing combustion strength.
Water cools the combustion temp by reducing the speed of the burn, giving a longer (better) burn, but not as powerful as meth.
Water injection has been being used in planes since the 1940`s, if it was such a good thing, it would be used more in todays engines, dont you think?
Methanol is very dangerous, its very poisonous, hard to store and extremely combustive so its not for everyday motoring use.