I regulary use gas with ethanol in it, as many of the gas stations here in the midwest use it all the time, regardless of the time of year. Since the major method of producing ethanol comes from corn, obviously the farmers here in the midwest approve of its use in gasoline.
In any event, I have not noticed any difference in performance between fuels with or without ethanol in it. Fuel mileage wise, I see little to no change in mileage. I still stretch 450 mile tanks of gas on my long driving trips at 70-75 mph using oxygenated blends, and I don't do any better when I have plain old gas in. Yes, I understand the energy content is lower, but I'm just reporting the results I have seen after over 5 years of driving this truck.
Ethanol absorbs water yes, but it keeps it in suspension, which doesn't allow it to freeze. If you live in a northern climate and have used Heet or something similar in your gas tank to prevent fuel line freezeup, you have been putting isopropyl alchohol into your fuel to accomplish the very same thing.
Current vehicles have fuel systems designed to use the fuels with ethonol, MTBE, etc in them. Older systems had problems with some of the addtives, but there should be no problems in our trucks, period.
Every now and them, I have a tank of gas that knocks. Anyone care to guess where it comes from? Amoco - one of the stations that doesn't have an ethanol label on its pumps when I've gotten it.
In any event, in my experience, I have had no problems using the ethanol blends, noted no difference in power, and if there is a difference in mileage, it washes out in different driving habits with every tank. Just my 2 cents...