I always like this debate...But here is what I've learned with "small engines".
Fuel with Ethanol does the dreaded "phase separation" if it doesn't get used up in a timely manner. And of course the ethanol, if left in the system can damage fuel system components. BUT, it's generally cheaper, and fresher, therefore, you're running fresher fuel through the motor.
On the other side, if you have a higher octane fuel, that won't separate and will likely burn a bit better. BUT, it's generally more expensive, so people don't use as much of it, so it's not as fresh and can still contain some water.
In the end, it's a wash. I won't buy 93 octane from a station that's out in the boonies with low traffic flow. Chances are that fuel will be older and cause problems. Had this very issue last summer. Lesson learned. If it's a cost issue, it's a wash. If it's a performance issue, most will say that mpg will increase with the higher octane fuel....provided it's fresh.
There are many different fuel additives, most of which contain alcohol of some form. If you're gonna add additives, then ya might as well run fuel with Ethanol. Most people buy what's cheaper, therefore it'll be fresher. All of course, my opinion.