I've seen a demo where low octane fuel vapor was put into a clear tube about 10' long and then ignited on one end. You hear the POP sound, and low octane fuel vapor was consumed so fast you really can't see the flame front burn across the tube.
Then high octane fuel vapor is put into the tube after blowing out the remains of the first test, and it's lit off.
WOW< almost amazing how "slowly" the flame front burns down the tube, you can see it clearly consume the vapor, and it's not nearly as loud, more of a whoosh than a pop like before.
So, imagine that your engine is a series of short tubes that vary in length depending on piston location at any given moment. When the flame front is created by the spark, it has to burn in a controlled manner. This controlled burn quickly raises the pressure, and forces the piston down, making the tube longer in effect, and as the piston reaches the bottem of the stroke, all the fuel should be burned in theory.
If it burns too fast, and it's "burned" out before the end of the stroke, and you lose some power potential.
Too slow, and it's still burning as the piston comes back up. (you might percieve this as a loss in power, but since the exhaust valve is opening up at this point, the unburned fuel is pushed out into the exhaust manifold, and consumed eventually. Either in the Cat, or as a huge fireball/backfire out your tail pipe.)
The problem occurs when the octane is so low, and the flame front is so fast, it raises the pressure in the combustion chamber so quickly that remaining fuel is ignited by the now even more compressed and very hot air/fuel. (Similar effect to a diesel motor where compression is used to create the heat needed to light off the fuel injected into the combustion chamber at just the right moment.)
This is generally called detonation. ("Ping" or a ringing sound from the engine under load generally.)
A very rapid chain of events can happen with low octane fuel.
1) Uncontrolled ignition of the fuel at the wrong timing point. This can happen as the pressure rises, and lights off the fuel prior to your spark plug being "fired". (May or may not have a "Ping" noise. Depends if secondary flame fronts are created or not.)
2) Upon the normal advanced ignition event, the fuel is burning so fast, the pressure spikes up, and you get secondary flame fronts started in other areas of the combustion chamber, and those flame fronts, hit each other, and you hear a "Ping" noise. The ping is not metal hitting metal, but pressure spikes hammering your engine from the inside out.
3) This flame front collision creates tremendous pressures, and that disturbs the boundry layer that keeps flames from direct contact with your piston crown, and other "stuff" in the combustion chamber. (Sounds weird, but think of this as a force field if you will, and it protects soft metals like alluminum from super heated burning gas that would quickly melt it.)
4) The disrupted boundry layer exposes metal to superheated burning fuel, and that metal is then quickly heated up to melting point. In the case of alluminum pistons, they turn soft first, deform and start to cause problems as the ring lands compress, then "grip" the rings, and your engine starts to destroy it's self at that point. If it lasts that long. (Typical broken piston ring lands are a symtom of this IMHO.)
5) Worst case, on the next intake stroke, the air fuel mixture is lit off by some glowing white hot metal, and then the intake valve closes, and you try and compress burning fuel.... This PRE-IGNITION generally takes out the motor at that point creating new holes for rods to poke out of, or valves get bent and broken, and a host of other problems occur. (Remember, much of your moving parts are superheated at this point, and not nearly as strong as they should be due to the heat effects on metal strength/hardness.)
So there you have it.
Slow burning high octane fuels where you risk the loss of power on the extreme end, or low octane fuels that burn quickly, but are fickle on force fed motors, and suddenly can turn and bite you in the ass at a moments notice. (Only takes a few seconds at the most, then it's over.)