On a 4 stroke it does not make much of a difference, but alcohols have little or no lubricity and are definitely not beneficial in a 2 stroke. And, if you look at the energy content of ethanol, it is about 1/2 that of gasoline (ethanol 23.4-26.8 MJ/kg for ethanol versus 46 MJ/kg for gas) to 10% ethanol is about a 5% energy reduction.
Also, the shelf life of a gas/alcohol blend is not very long, ~3 months, and it will absorb water.
Ethanol is all about politics, not science.
http://www.fuel-testers.com/expiration_of_ethanol_gas.html