Corn-based ethanol does have a lower energy content than gasoline. The trade off is using a domestically produced fuel source with lower emissions. When we finally get a cellulosic-based ethanol, there will be more benefits (better energy return, etc). If all you're worried about is MPH, then go for 100% petroleum.
The problem with power tools is because they're left sitting for long periods with gas in the tank not being used, I would imagine. That's not really a good idea with any type of gas.
Did you know Brazil has been on ethanol since the 1970s? http://en.wikipedia.org/wiki/Ethanol_fuel_in_Brazil



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