Stan is right, tune makes all the difference. A good tuner, who knows both the engines and the gearboxes, can give you a a strong engine and a safe one, that won't bend/break rods etc nor gearboxes, and that engine (stock) will handle 200rwkw safely, with only bigger injectors to feed it.
That site Stan linked to has some really dodgy info. For example, the commonly accepted limit for 6-speeders is 250rwkw/350rwhp, and most tuners would prefer to stop a safe tune at around 240rwkw, to leave a margin. It is possible to get more, but you have to accept that you are pushing the limits. You'd do that in a track car perhaps, but probably not a road car. Although we have someone on here with so many killerwasps that he has replaced everything from the block back to the rear hubs with stronger, including a BMW gearbox, at a cost that I don't even want to think about (Daffy, thinking of you

).
Another is the reference to 'melting pistons'. What kills pistons is not heat, it is detonation. Detonation can be exacerbated by high EGTs, but mostly it is too much advance, too lean a mixture/poor quality fuel, etc. I could go on. However the list is useful in that it does identify critical items (in addition to items mentioned in posts above others include the crank damper and oil pump), but the information needs to be crosschecked with a local MX5 turbo expert.
If the car was pushing out 170rwkw, it had to have an aftermarket ECU and at least bigger injectors. If so, are there data logs in the ECU, that could point to the cause (academic now, but helpful going forward)? If not, there is the problem, I don't think the stock ECU is up to handling that level of power.
Hope that helps.

PS To answer you question, holed blocks are rare, but bent rods are way common and not just (but most often) on turbo engines. Sometimes you can hear them ticking at idle, as the rod touches the bottom of the cylinder bore
