Ethanol increases horsepower... Its a much higher octane level then gasoline, but our engines are still made to work with gasoline so the octane level isn't taken advantage of. The mixture is more corossive than gasoline alone. I know car dealerships spend about $500 worth of heavy duty mods to the engine to get it working safely with the E85. I've read that any car can run safely on a 15% ethanol mixture without any modifications to the engine.
For your bike to run correctly on E85 you would have to have it re-tuned for it. The bike will actually run leaner with E85 and once you tune it, it will use as much or more of the E85 as it does regular gas. My opinion not worth the time and effort.