if you have too much boost, basically it will start opening your exhaust valves and blowing through it, which obviously loses power in your motor, and... also does things like overstress your push rods, cam shaft, and everything else connected... one way to prevent that is by using heavier valve springs if you're going to put that kind of boost to it...
i think you're ok at 7psi, but i think 10 MAY be too much for a stock motor...
however, with that said, even at 7psi, if you got a good TUNE done, you'd get a shit-ton more HP and torque out of what you have...
good luck...
p.s. using heavier valve springs and things like that start making the motor a little bit less "streetable" meaning, it runs like shit at low rpm because it takes more power to make the engine move and that it depends on that extra boost to make it run smoothly....
turbos aren't always on - as you know....