makes em go better.
water lower cyl temps but that's not the only effect it has. belive it or not it actualy iteracts chemicaly with the fuel and air to help the burn. the water H20 ( some of it ) will become peroxide bit like this 2 X H2O + O2 > 2X H2O2 shortly after the peroxide H2O2 brakes down back into H2O ( water ) and free atomic oxigen ( thats really good at burnign stuff )
the other feature is it not only removes heat though the waters laten eat of vaporisation but chemicaly stores energy for a short while in the form of h2o2
methanol is just a bloody good fuel it carrys some of the oxigen it needs to burn within itself so are in effect injecting oxigen into the engine as part of the fuel as it needs less o2 to burn you can burn more for a given amount of air therefore getting more power it also rases the effective octane rateing and is bloody good at moping up heat exp when running on high % mixes
long and short, you can shove more in the cylinder and light it sooner to get more power without haveing to add fuel by the bucket to keep the cyl temps down, excess fuel keeps det away to a point but water dose it better