<< Isn't running rich better than running lean? Because if you have less fuel, then you can damage the piston?
Also when under WOT, the ECU runs in an open loop, meaning it disregards all the parameters for fuel-efficineny and emissions. >>
Out of the two worse case scenarios, yes running rich is better than running lean, running it rich will foul up your combustion chamber, running lean will cause the engine to ping(detonate, knock) and it can also cause the exhaust valve to burn out due to higher temperatures of a lean combustion.
The open loop running of the ECU is somewhat of a misnomer, some cars will ignore the o2 sensor at WOT while still monitoring the air mass meter and/or MAP sensor while the majority always stay in closed loop. Some engines do richen up the mixture even as much as 12:1 at WOT to reduce chance of pinging and reduce exhaust temperatures. This generally isnt harmful because the engine will not be at WOT for long periods of time at high revs.
Now many ECUs also lean out the mixture on cruising conditions, some can go as lean as 15.5:1 under very light load constant speed cruise. This is a common reason that engine control units need an input from the gearbox speed sensor. Reason for this is fuel economy and emissions, it varies with cars. The reason the exhaust valve is unlikely to burn up is the greatly reduced amount of gas that flows past it under these conditions.
Cyberian: Out of tune cars will richen the mixture on throttle lift off, it is what is called afterburning, or the popping you hear in the exhaust of manual dinosaurs rolling down a long hill in a low gear. EFI cars generally stop all supply of fuel when the throttle is closed and the engine is above approximately 2000-3000rpm, depending on engine and car.
Cheers