Spud Guns and Canons are actually regulated by the Alphabet org. They use an combustion explosion that propels the projectile. The Alphabet org can really ruin your day about it if they want to. I know that everyone builds them and plays with them, but they're illegal believe it or not. If your barrel isn't long enough, you can run afoul of state laws regarding short-barrel shotguns too.
The guys that built the world record bottle rocket were aerospace engineers if I remember correctly. They weren't 16 year old boys. If you watch their videos they tested their CF wraps and pressurized them from about 200ft away and contained them in metal cages to contain the shrapnel. They experienced multiple 'sudden rapid dis-assembly' incidents captured on video. Kids water bottle rockets are very different from what those guys were doing with pressurized soda bottles. Water bottle rockets use compressed water. If the water bottle ruptures, it becomes a squirt gun. No big deal. Worst case scenario is the rocket cracks and water leaks out.
Air compressors use a welded steel pressure vessel designed by a certified engineer, tested to
ASME standards with a calculated design safety factor included in the design. Even then, you'll notice that they all have a drop-dead date stamped on them. They
will eventually fail after cyclic loading. This is why the DOT, OSHA, ASME, EU and numerous other governing bodies have standards for pressure vessel designs, testing requirements and lifespans. Did you ever wonder why the person who drives a train is called an 'engineer'? It's because back in the day, steam locomotives were powered by enormous pressurized cylinders of expanding steam. It required a freaking engineering degree to understand how they worked, and keep them working. Before the creation of ASME standards they would routinely explode killing many many people.
Again, I applaud your curiosity and ingenuity. I've done plenty of stupid things myself that could have killed me involving hydrogen, dry-ice, gasoline, styrene, kerosene, who knows what else. I survived, right? True, but you won't get warnings from the kids who blew themselves up. They don't get to participate in the survey. It's hard to raise your hand if you don't have one. You can't say 'aye' if your jaw is missing. Trust me and learn from my statistics beating experiences. Don't do this. By the way, I do have 2 engineering degrees.