The benefit of the Promethium Thruster is extra speed and better fuel efficiency. The balance is meant to be "next level" for Vanilla Factorio, so it doesn't make you go Warp 9. I've had ships up to 600km/s without thruster stacking.
If the thruster loses power, the containment field that contains the Promethium radiation fails. Then the surrounding entities take about 1-2 damage per second. Again, "next level" difficulty". If the thruster does get destroyed, yes there is an explosion that does additional explosion damage to surrounding entities. It's not a huge nuclear explosion, but it hurts if you have the whole back of your ship lined with exploding thrusters.
I may put in a difficulty setting to dial this up in future releases.