The quench or squish also cools the combustion chamber. As the mixture is "squished" it quenches the chamber (this is why it is called quench).
Ben, you would be VERY wise to choose a combo that will give you a .035 - .045 quench. I know you are going to push the limits with your new application. Sure a tight quench is better for making power as well but, detonation is even more of a reason to keep it tight. A tight keeps the charge in a controlled area, not floating all over the combustion chamber. This way when it ignites it is controlled (one flame front), if not then there is a MUCH higher chance of having more than one flame front (due to the charge being all over the chamber) and if you have more than ond flame front this is where detonation comes from. You will be much better off with a slightly higher compression ratio and a tight quench than a lower compression ratio and a loose quench.