ybajwa- Unless you have a weird situation (e.g., exposed timing belt and imperfect seals) you don't have to worry about degreasers getting in the engine. Consider that the engine oil/etc. doesn't come *out* so stuff shouldn't be able to get *in*. I've never had problems (and I've had the weird example I mentioned). A little common sense goes a very long way and since you sound pretty cautious I wouldn't expect any problems.
You probably wouldn't blast the distributor cap with a pressure washer, right

And even if you did things'd be OK once it dried out.
The main reason I'll use the more conservative approach is to avoid having to do a huge/"everything all at once" job. Using brushes and swabs I can, for instance, work on the Jag's engine for an hour or two and then quit/resume at my leisure. When I do a big degreasing job it's a pretty involved, messy process and I don't always want to open that can of worms (at least not all at once).
I just did a so-so job degreasing the engine compartment of a 231K mile '89 Benz, obviously never been cleaned before. With degreasers and the steamer and the hose, I did kinda wonder if I was gonna have problems since the electricals and engine seals were in pretty bad shape with regard to looking sensitive. I just went ahead and did the job. It did start up kinda rough and I had to play with the gas pedal for a few minutes, but then everything was fine (I let it run for 15 minutes or so to heat up and dry out).