The differences between 4032 and 2618 listed earlier in this thread are pretty spot on. I've seen both 4032 and 2618 stuff hold up just fine at higher horsepower levels and bigger boost.... and at the same time I've seen them both fail into a melted pool of aluminum at much lower power levels. The key to the whole thing is the tune-up.
We had an employees Mach 1 a number of years ago that had a built-up stroker engine and was Procharged. Tons of time on the chassis dyno and boost numbers in the 30 lb range with power around 750 RWHP. The car went to the track often and I'm sure saw it's share of "spirited jaunts" during its daily commute. We had the opportunity to take that engine apart after a year or so for a further upgrade and we found that the pistons were still in excellent shape, these were the Mahle 4032 models.
On the opposite end of the spectrum though I've seen engines where they were running 12-13 lbs of boost on pump gas and just missed the tune-up and the pistons melted first shot out.
Regardless of whether its 4032 or 2618, the aluminum itself won't melt unless something is wrong. When detonation occurs the pressure waves can blow-out the boundary layer that protects the piston. Once this happens you've got an open flame blowing directly on the piston. Normally the piston will always have this boundary layer of un-burnt mixture which is in direct contact with it. This boundary layer won't burn because the piston temperature is lower than ignition temperature of the fuel-air mix. This keeps the piston protected during normal operation. When you start adding detonation into the mix though you quickly start to lose this protection.
Most often the damage starts near the rings or outer crown of the piston because these pressure waves are reflected back off the cylinder wall. These reflected pressure waves then recombine with other pressure waves and amplify the intensity in these locals. This is why the ring area suffers so quickly.
It's important to remember that there are a large amount of factors that will control whether or not detonation will take place. Air/fuel ratio, ignition timing, fuel octane and type, chamber turbulence and mixture motion, piston temperatures, cooling system, oil contamination, etc. So having just your air/fuel where you think it needs to be is only one piece of the puzzle.
We've shifted a lot of our piston offerings towards the 2618 pistons. This is for a couple of reasons. The 4032 piston in most cases will hold up better over time compared to a 2618 piston, it basically just "holds its shape" better. The downside of 4032 and it's resistance to deformation is just that, its resistance to deformation. When detonation is introduced the 4032 piston is going to have a tougher time "absorbing" or dealing with the shock and pressure because of the material. A 2618 piston will usually offer a little more conformity under abusive conditions.
This is not to say that the 4032 piston is not a great piston though. It's just a matter of application and how well the variables are going to be controlled. If you plan to run pump gas and mid-level boost ranges (10-20lbs) you'll probably be better off with 2618 because you've introduced a huge variable, the fuel. Pump fuel can vary greatly from station to station, brand to brand, etc. The amount of time its been sitting in the tank can also have an affect. Just think about how often the Regular (87 octane) tank is probably filled and cycled at a gas station in comparison to the Premium (93 Octane) tank. How many more people buy Regular fuel. So while your tune might be setup for Premium fuel (93 octane) there is no guarantee that what you are getting out of the tank is actually 93 octane, in theory it should be, but what if its 91 octane and you're tuned to the edge of what 93 octane will take?
For the higher power/bigger boost applications I tend to prefer to use the 2618 pistons as they have a larger safety margin. If you know the tuning is going to be spot on and you're setup is pretty dialed in there is no reason you can't run the 4032 stuff and make big power and run more boost, but you have to have your setup dial-in.
With any piston, or engine for that matter it's always better to do your tuning and testing and push the limits in a slow methodical manner, bumping it up a little each time. Once you've reached the max it will take you should then back it off a step or two for safety.