maybe I'm missing some thing or some of you guys are more technically minded than me. But the octane rating is the temperature that the fuel ignites under compression. The higher the temp, the bigger and cleaner the bang, given improved power and emissions.
You are correct. You can compress an air/fuel mix further, generating more heat, if that fuel has a higher RON number. Not a hell of a lot of difference between a RON95 optimised car and a RON98 optimised car for effective compression ratio (about 10:1 max for RON95, 11.5:1 max for RON99 and 25:1 max for diesel), so efficiency differences are marginal.
The difference between a petrol and diesel engine air:fuel mix pressure/temperature is huge. Diesel is compressed much further, self igniting at a much higher temperature to make a bigger bang and converting more of that bang to kinetic energy. Diesels also run with air at a large excess, which is not the case with petrols.
However, people generally assume that RON98/99 fuel has more chemical energy per litre than RON95. It doesn't, and in many cases the higher RON fuel is less energy dense. Ethanol has a much higher RON number than petrol, so it's often used to increase RON number in higher octane fuels. RON95 is typically E5 rated (5% Ethanol), RON99 is often E10 (10% ethanol). Ethanol only has 2/3 the fuel density of undiluted (no ethanol content) petrol. So E10 petrol has around 98.5% of the energy density of E5 petrol.
For a car optimised for RON99, burning that RON99 E10 fuel, it needs to be burning it marginally more efficiently than a RON95 optimised car burning RON95 E5 fuel to match it in mpg. This lower fuel density burned in a marginally cleaner way under higher pressure cancels out.
As you use more throttle and fuel per ignition cycle, there's a limit to how far you can compress that fuel:air mix, so cars optimised for RON95 have less fuel in at max output than RON98 optimised cars. This is why the likes of the TCR and R need RON98 fuel to attain their max outputs because the amount of fuel required would cause pre-ignition if that fuel were RON95.
Due to this limit on how much fuel a RON95 optimised car is metered to add per ignition cycle, there is no need to advance the timing to compress the fuel further if the car is being fuelled with RON98.