An instructor at my school that teaches the class that deals with alternative fuels says otherwise. He says the older cars had the rubber seals and hoses slowly deteriorate but the newer cars are made with different materials and can handle it without a problem. E85 is a higher grade octane than 91 grade fuel, is cheaper per gallon, and directly replaces fuel in the tank. At the same time, you don't get as many miles out of E85 compared to gasoline and there aren't too many pumps around that sells it. It should be safe seeing as how my course book claims newer cars are fit for it (as long as you tune for it) and I found a guy at my school running on E85 with an Evo 8. Stock internals with bolt ons (stock turbo) running on 26 lbs of boost with his E85 tune.
Plus, ethanol in E85 is an alcohol similar to methanol in the water/meth kits. If the alcohol base in methanol doesn't kill the hoses and seals, ethanol should be the same way.