This is true but actually not as much of a problem as self interested make it out to be. Other than the propaganda reason (i.e., to make people think "85" is t

This is true but actually not as much of a problem as self interested make it out to be. Other than the propaganda reason (i.e., to make people think "85" is the octane) the reason that it is called E85 is that it is only 85% ethanol and 15% gasoline. Ethanol by itself it not volatile enough to start an engine in cold climates so they spike it with gasoline. Also you're correct it can phase separate but you could just as easily blame the gasoline for that problem as the ethanol... and if you tend to drive your gas tank down to near empty it reduces the problem even further.