Chris,
I think Car and Driver (or Road and Track) did some dyno testing on some knock sensor equiped cars, including the Mustang, and premium gasoline was able to get about 2-3 hp. Like you said, there probably isn't any ECM that will just keep pushing up timing. Besides, only some much timing can be added that will benefit power no matter what the octane rating. I'm sure they probably set the upper limit of timing to what is optimal for a given engine using the best available pump fuel. Our engines run best with 34 to 36 degrees of total timing so they would probably cap it at 36 if we had knock sensors, for example.
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