I’m a jet engine design engineer, so maybe I can help:
Water content in air does reduce the efficiency of combustion in any type of engine. Some of the fuel energy that would otherwise be used to push a piston or blow a turbine is used to evaporate the water and separate the hydrogen from the oxygen. If enough water gets in, there’s not enough to keep the engine running.
Piston engine intakes, and some turboprop ones, are designed to keep rain out by providing some corner that intake air has to flow around. Some turbofans are designed to allow water (or other solids) that passes through the big fan up front to go around the engine core entirely.
In a jet, water is vaporized before it reaches the combustion chamber, due to the heat of compression of the air. By the time the air gets there, the air is already at about 800F or so. Before liquefying, the impact of the sharp little compressor blades on rain droplets can cause some erosion damage and efficiency loss, though.
Water injection was used in some of the late big piston engines and some of the early jets for increased power during takeoff, but the water didn’t provide the power directly (“Cornflakes” is right). It served to keep the cylinder heads, or combustor cans, cool so that more fuel could be used without burning the engine up. The increased fuel flow provided the increased power. But the water system had its own weight, using some of the increased power itself, and the higher stresses reduced part life significantly. Modern jet engines produce enough thrust, and have high enough compression ratios, that there’s no need for it anymore. Pity - I’d have loved to see and hear a Boeing 707 “water wagon” take off sometime.
Incidentally, “excessive” turbocharger capacity at low altitudes is controlled by choking down the flow with the wastegate. You still can’t overtemp the engine.
“Icerigger” is right about the FAA certification tests that new engines go through (and is it ever fun). There are prescribed ingestion tests for rain, hail, ice slabs, single large birds, small numbers of medium-sized birds, and flocks of small birds. The major manufacturers have permanent ground-test facilities with custom-built cannons for just this reason. An engine also has to show that a fan blade can break off without penetrating the casing, causing a fire, or tearing the engine off the mounts due to imbalance loads (compressor blade containment can be shown analytically).
Engines also get a fair amount of ground testing at a range of power settings to identify any durability problems. Sometimes we’ll identify a max-vibration point and just sit on it for a long time. Others are simple flight simulations. On military programs, we’ll normally have slave engines simply running all day long on Accelerated Mission Testing cycles, in an attempt to find problems before they can happen in the field. Commercial engines will normally operate so many hours per day in service that factory testing can’t keep up, however.
A commercial engine life of 10,000 hours between overhauls isn’t unusual. Some fatigue-limited parts, like turbine blades, will have to be replaced periodically, but most of the engine can easily run forever. A similar life on a fighter engine would mean that there was capacity to advance the max power setting - it’s worth it to trade life for thrust on those.
Thanks for letting me brag.