Higher octane actually burns slower, thus the reason why it helps to reduce detonation, however it should only be used in applications needing it, i.e., high compression, turbo, etc. Stock cars will typically run slower on 110 octane. More octane is better only to reduce knock, but only to a certain point, once you get to the octane that reduces knock, going to higher octane the "burn" will be slower, and thus the slower et. In theory you want to run the lowest octane that does not produce knock. As for high octane retarding the timing, not sure how that can be, octane alone does not cause the computer to retard timing, it has no idea what the octane rating of the fuel you are running is, however when it detects knock via the knock sensor it will retard timing based on the PCM tables.