I wish i had e85 too. Its alot higher octane, yes you will loose some power if you run it as is becasue You need more timing to take advantage of it. A little more fuel preasure helps as well. Like running 110 octand in a chevette. Of cours its gonan run like a--. Now tung the chevette to run on 110 and it would get more power!
And yes the alcohol can eat away at some seals over time, that why the offer teflon lined fuel lines and intake gaskets. So the stuff dont eat out the seals. If you runnin a high compression street motor with lots of timing with would get better millage and power! How can you go wrong there?