We have Ethanol fuel in Canada, just about every station has 10% ethanol in the regular fuel. Premium us still good ol' gasoline though.
I can tell you from personal experience.
Ethanol blended fuels put the hurt on two-stroke engines.
Echo and Husqvarna are both aware of it. We started having problems with burnt up engines in chainsaws and string trimmers about two years ago. These were from experienced guys who knew how to run 2-stroke equipment.
I contacted the tech departments at Echo, Husky, Sthil and Makita (Sachs-Dolmar saws)
Everyone but Makita told me that the ethanol was causing increased engine temperatures which causes pistons to melt, rings to stick and cylinders to get scored.
The solution was to tell customers to run only premium in their power equipment (good luck with that) or de-tune the machines.
We richened up the top end on the engines and they quit burning up.
The problem is, professional guys like loggers who's felling time relates to their paycheck will always tune the machines to ten tenths in order to get the most work done in a given time. They're not really happy when they have to accept reduced performance.
There you go, not heresay, first hand experience.
I doubt there would be any significant trouble in a water-cooled 4-stroke though.
Shawn