Quench is the technical term for both descriptions, and 'squish' is a common slang for quench. You are correct of the proximity and effects (literally quenching and limiting initial burn radius from the plug), with common street engines of our description striving for roughly 0.035" to 0.05" max piston-to-head clearance, in order to minimize end gasses that lead to detonation on det-limited fuels.
A chamber does not care about pressure from atmospheric (NA) or boost for burn, and there is no special benefit from it due to that. Non-quench is more prone to detonation no matter the pressure or density, as exhibited by hemi and open-chamber examples. There are design preferences for certain chamber shapes (e.g., hemispherical to allow high valve angles and/or central spark plug location), but they are not applicable to our designs. To some degree, "it is what it is" at this point.