Actually, I don't think that 12.5 is pushing it at all. As already mentioned, the key is to tune for the compression ratio. If you use a fully programmable ECU then you can easily go 12.5:1 or more. The practical limit on compression is more often defined by things like valve to piston clearance and the ability of the remaining combustion chamber size/shape to support a clean flame front. A larger piston dome and higher lift cams eventually become a problem. Of course increasing stroke and/or bore effectively adds compression with all else being equal so you may not run into clearance problems.
In any case, higher compression is not all that different than forced induction, which roughly equates to a super high compression ratio under boost. So just as with turbos and SCs, you need to find the best balance of AFR and ignition timing (and valve timing, and other factors) to achieve the maximum safe power level throughout the RPM range. The difference of course is that the higher compression ratio is always in play, but tuning for it is much the same.