yes, n20 sprayed on a lit candle will blow it out. it needs to be heated and pressurized for the molecules to separate into nitrogen and o2. n2o has 37.5% o2 by volume, and regular air has about 20%. thats how ti makes power, because for the same volume of gas, n2o has much more oxygen t han normal air. also as a gas expands, it absorbs heat, greatly reducing intake tempatures and further increasing the available o2 for combustion. n2o itself doesnt mess up the engine, but when you burn it and dont add enough fuel, the resulting lean condition does hurt the engine. the little boxes that come with n2o systems are meant to be used on a stock engine, and are calibrated as such. so when you add other mods like a cam or a p&p job, or even more so, a turbo or s/c, you have a very good chance of killing the motor. because the electronic boxes are compensating for fuel maps of a stock engine, not for one with mods. they only way to run n2o in conjunction with other internal mods is a dyno tuned programmable ecu like a hondata or aem ems. otherwise you will lean out the motor, and that will kill it.
you are completely wrong about superchargers and s/c's, you have them backwards, at least if its a properly sized turbo. a t3/4 on a stock d15 will make nothing but peak power, yes. but so will a vortech. a ball bearing t25 on the other hand, will make power all across the rpm range. the vw 1.8t motor, with 180 hp makes its torque peake at 1950 rpm. that means the turbo is fully spooled by less than 1950 rpm, and is making good boost from there till redline. that same performance can be achieved in a honda, with a properly set up turbo and a properly tuned ecu. s/c's on the other hand are very specific to the powerband. the vortech barely produces any extra hp below the vtec threshold, and boost peaks at only redline. one rpm below redline, and your not making full boost. thats the drawback of engine driven s/c's. the jrsc makes peak boost lower in the rpm range, but its poor efficency turbines make a lot of heat and not much boost at redline, so they dont increase peak hp by nearly that of a vortech or turbo. but they do produce good low end torque boosts. a properly sized turbo will do both, it will spool quickly to make good low end torque, but it will hold the boost throughout the rev range to maximize peak power.
now obviously nothing will be a perfect solution, because the nature of turbines. they are very very rpm specific devices. a turbine has a very small window of rpm's where it is operating at its max efficency, where the designers of the turbine decided the turbine would spend most of its time. stray much from this rpm, and the turbo becomes less efficent rapidly. efficency in our case is the ability of the turbo to pressurize the air without creating heat (beyond the heat that naturally is produced by compressing air). if a turbo is 70% efficent, for every theoretical 10 lbs of boost it could make, its making 7 lbs of boost and the rest of the energy is lost as heat into the intake charge. why am i tellign you this? because s/c's, due to their being belt driven, can only run at their peak effiecncy rpm when the car is running at the correct rpm, decided by the pulleys. stray from that rpm, and the s/c is making more heat than boost, which is bad for hp and creates detonation. a turbo on the other hand, because it is driven by exhaust gases (actually most of the energy comes from the exhaust gas heat, not the actual gas itself. remember the nitrous cooling effect, well this is the same basic idea. the nitrous released energy as a reaction breakin up the nitrogen from the oxygen. as the exhaust gas expands from a tight space (your exhaust manifold) to an open space (your hopefully free flowing exhaust) it releases lots of energy, and luckily for you, you have a turbine willing to absorb that energy and turn it into boost. the bigger the difference in pressure between the manni and the downpipe, the more boost will be created and the faster the turbo will spool. thats why a 3"+ exhaust is best for turbos) it can run at its peak efficency for much longer periods of time. you also have a wastegate, so you can keep the turbo at its peak rpm, even with an overabundance of exhaust gas. so you can get boost much sooner, and keep it over a longer rpm range with a turbo.
if anyone needs cliffnotes just ask, it may be a bit confusing i just pulled that outta my ass at 3am. enjoy!!