I follow a couple of vintage Japanese motorcycle forums when I'm not looking at OldMiniBikes. On one of them today, a fellow asked about running E85 in his old Hodaka 2-stroke. I liked this answer:
"The main problems with using oxygenated (read alcohol-blended) fuels in vintage 2-stroke motorcycle engines are as follows - 1) their propensity to attract and trap water which may result in fuel system, internal engine, and exhaust system corrosion, 2) the alteration in the miscibility of fuel/oil, either premixed or injected which can adversely effect engine lubrication, 3) the potential for damage to the rubber oil seals, carberator o-rings, etc. resulting in an air leak, lean condition, and predicted engine damage, 4) the different vapor pressures of alcohol vs gasoline resulting in an alteration of the evaporative and atomization characteristics of the blended fuel premix resulting in difficulty/impossibility maintaining proper jetting, and on the most basic level, 5) the plain fact that these engines far predate the use of alcohol blended fuels by decades. They simply were not designed to run on ethanol. These issues would likely be amplified as the alcohol fraction increases."