In the old days, trawler engines used a drip feed of water into the induction, when operating at high loads.
Possibly, humidity in the air,(moisture) evaporates in the induction system and by cooling increases air density, and so the mass of oxygen available for combustion. A sort of cheap internal charge cooling. But overdone, can result in water finding its way into the sump and emulsifying the oil.
The Full Load torque curve of a diesel engine is usually mirrored by the Specific Fuel Consumption curve, so the best speed for economy is often Peak Torque speed. Possibly this is the engine speed for maximum volumetric efficiency. Road load operation will mean that the engine is unlikely to be on full load, unless on a hill with a convenient gradient, but can still be running at the speed for optimum volumetric efficiency.
Mechanically governed Diesel engines, having higher compression ratio and miminmal induction restriction were more economical than a petrol engine, plus the fact that fuel was cut off as soon as the engine speed exceeded that selected by the position of the throttle lever.
A Diesel engine with a vacuum governor is a slightly different kettle of fish. It still cuts off fuel on the overrun, and engine brakes because of the induction restriction, but gains efficiency from having less variation in temperature at the Inlet Valve.
Possibly, the best point at which to change up is just about peak torque speed.
Certainly, on a hill hanging on below peak torque is likely to result in a rapid loss of engine speed.
Modern petrol engines, with electronic control, now do the same thing, giving improved fuel consumption. (A closed throttle on a carburetted engine applies maximum vacuum to the idling system and pulls fuel through giving a richer than normal mixture. Despite being a lot heavier, my 2005 1300 petrol gives a fuel consumption nearly 50% better than a 1977 1650 with a carburettor, to prove that point. Having a higher Compression Ratio, and D O H C rather than push rod valve operation helps, despite the pumping losses imposed by the emission control bits.
Howard