clipped from: www.businessweek.com   

Not only is ethanol proving to be a dud as a fuel substitute but there is increasing evidence that it is destroying engines in large numbers


For the fourth time in our history the ethanol industry has come undone and is quickly failing nationally

using ethanol actually creates more smog than using regular gas, and the EPA's own attorneys had to admit that fact in front of the justices presiding over the Third Circuit Court of Appeals in 1995

fuels laced with ethanol reduce the vehicle's fuel efficiency, and the E85 blend drops gas mileage between 30% and 40%,
clipped from: www.businessweek.com   
In layman's terms, ethanol causes pinpoint leaks in the fuel system; when leaking fuel catches your engine on fire,

Though the media is ignoring it, one can easily find many stories on BMW (BMWG.DE) blogs relating similar problems with fuel systems damaged by the use of ethanol.