Well, the boost/power level you were running wasn't extreme. Judging from the melted spark plug, there was detonation which probably caused the head to lift. I'm sure those threads didn't help. Obviously the tuning window shrinks with really high compression.
To me, with a boosted car, the only thing higher compression does is give a better feeling throttle response when off boost. Either you run higher compression and less boost and timing or lower compression and higher boost and timing. Either way, the blower/turbo is only going to make the power it's rated for. I think there is a happy middle ground with regard to compression.