It seems that the initial pressure is closer to 350 PSI, tripling that gets you to 1000 PSI, that starts to be "serious pressure" close to 70 atmospheres, thus overheating could cause catastrophic blow up of a tire and it would look like that picture since failure will start at the weakest point on the tire. Of course, it is possible that the seal between the rim and he tire would fail long before that. I have no idea which will fail first. What bother me with such a theory is the lack of detected gradual increase in temperature in the wheel well prior to that "burst", thus the "sabotage" theory, if indeed a tire blow up was the cause. Atmospheric bubbles as a cause seems a valid potential explanation as well, though as high as these go, I have never heard of any found at 200,000 feet, but unusual circumstances could be there.
Zeev