Ethanol isn’t like isopropyl alcohol which is one of the better dry gas alcohols . Isopropyl will keep the water in suspension attached to the alcohol and can pass through the system and be burned off ."Water will stay suspended in non ethanol fuel" Nope ,water ,a small or large amount will end up at the bottom of the tank.Alcohal will absorb the water and allow it to pass through a carb. or injector,into the cumbustion chamber and out the exhaust as steam.
Ethanol will phase separate and settle to the bottom of the tank and cause major problems . This mixture Will not burn .