Well, you can believe what you want to believe. Ethanol has been in our gasoline since the late 80's, and Congress required all cars manufactured to design the fuel system to tolerate ethanol. Guys have been running alchohol at the race track on normal gasoline fuel pumps for decades.
If you test a fuel pump in a bucket of water, it'll kill the fuel pump instantly...I've seen people do it. It's because water is electrically conductive. If E85 is the same, then why is my car still running, along with God knows how many other guys. There's probably over 2000 Honda's running E85 now, if not more. I've seen vids of various Mustangs, Vette's, motorcycles....all on stock fuel lines, O-rings, gaskets, etc running E85.
For one, the government, along with auto makers want people to buy flex fuel vehicles...they don't want people to start converting. They are going to discourage this practice, saying the vehicles are special and need this and that. On top of the fact, that lots of people in the car community think they know something about something, and post alot of b.s. When guys search google for info, alot of this crap gets thrown in the mix, and there is confusion.
I've read documentation from very trustworthy sites and representatives saying Ethanol requires a different O2 sensor, because the stoich ratio is 9.7:1 and gasolines is 14.7:1. They say special O2's that read that range are necessary. O2 sensors are lambda sensors, not ratio sensors though. I tuned my car on E85 just like it was gasoline...not a bit different. I tuned for an 11.6:1 ratio under wot. In lambda terms, that's .78 or so lambda. Rich for the street. You tune to lambda, not to a mathematically created ratio of lambda based on the fuel in the tank.
All I can say is, I'm running it and running it damn well. I have friends that are running it (tuned by me), and I know guys on the internet running it. Not ONE....repeat ONE incident of a failed fuel pump, failed line, failed anything in two years. I just can't help but believe that the myth is fairly busted.