You obviously have not seen our jet kit compared to the UFO flatslides. An independent shop (PCW) built two identical engines and our kit out powered the flatslides (even their setup). Plus, you don't end up smelling like fuel, can go more then 130mph (at that point on the UFO the fuel is sucked out of the carbs by the air flowing over them), and get close to double the fuel mileage. About the only thing that the UFO carbs is good for is looks (but they kill your knees too).
I do believe you are also incorrect on the combustion temperature. The nitrous gives a cooling effect and the additional combustion pressure is what can cause issues with the pistons (too much pressure can cave in the piston or even cause the ring lands to break off).
Heads and cams don't have to be done. BUT, just like it would work on a N/A engine (naturally aspirated) you can get more power if they are done well and cam'd for it (for maximum gains). It's more of a percentage of power gained. On a turbo/supercharged engine 14.7psi would theoretically be doubling the HP by doubling the amount or air/fuel introduced into the engine. This is reduced by the engines efficiency at converting the potential HP into real HP.
Sean