I think the main concern with ethanol's hygroscopic nature is injector corrosion which leads to injector failure/degradation. This is in cases where the car is run, then parked for a while with the residual watered-down fuel percolating on the injector's armature and rusting. Not an issue with ethanol-compatible injectors in which the materials are highly resistant to corrosion/rust. I think it is also yet to be determined whether a deleted CC would cause more water absorption into a tank of E85, but it's an interesting theory I haven't considered before. As to the concern for volatile aromatics emitted from the gas tank, I think your concern is valid. But I'm personally not convinced that it's volatile to an extent that we should be concerned for our health about. I'll stand-by for input on that though.
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