I ran my BMW 1991 E36 320i on E85 for 3years and 50000 kilometers.
I just put in a new Walbro255 fuelpump, used larger injectors and aftermarket engine management system.
Ran just fine! No issues at all with gaskets etc. Passed emissiontests yearly!
E85 has had a bad reputation but that is probably since all the ethanolcars so far have been made in order to be able to run regular fuel as well.... 13:1 - 15:1 in compression for a N/A engine on E85 should show much better mileage and economy.
Mythbusters would probably find that regular fuel is more corrosive that ethanol on most hoses..
It's only untreated aluminium that will show signs of wear/corrosion. So plastic or stainless steel is better material for the fuelrail!