unless your running e85 there is no real point of revving to 7000rpm, your better of using the torque of the motor but that really depends on your curve.
I use to rev mine to 7k but realized short shifting at 6500 would shave a .5s of the quarter mile time until I got cams.
7000 RPM was just an example; the same would apply at 6000 or 5000 RPM, only to a lesser degree. The VE of an engine changes throughout its RPM range and, especially on a stock head/cams N54, will have dropped a decent amount by redline. That's why I mentioned peak torque RPM as the other extreme, ie. where VE and therefore cylinder pressure will be the highest.
Why I say 21psi because sometimes the motors will over boost to 22psi or more, 22 to 24 psi is where the bolts start to slowly stretch.
Sure, but again, what RPM are we talking about? As I previously mentioned, VE changes throughout the rev range, and as a result so will cylinder pressure at a given boost level. I'm not doubting your 21 psi number, but given that we're talking about torque/cylinder pressure, a boost level on its own isn't enough information. If we're talking about a car that was hitting 26 psi at 3500 RPM, then it makes sense that it would lift a head, as that's very aggressive. But if we're talking about a car that had a slow taper up to 24 psi at redline, with no knock and reasonable ignition advance, then that's a totally different story.
Also yes the advance will play into it but not so much on pump gas but cylinder temps will as they will be much higher on pump.
Cylinder pressure for a given torque level shouldn't change with fuel type (although don't quote me on that, there may be some differences, albeit fairly small I'd imagine). Unless we're talking about knock, but that's a separate issue. My point here was that for a given boost level, if you retard ignition timing, peak cylinder pressure should drop, as you aren't starting combustion until later in the piston's stroke, meaning there's less time where the piston is traveling upwards while combustion is happening. And lower peak cylinder pressures means less chance of head lifting/rod bending/etc.