Now... I've got a small car/engine. The MPG might be markedly worse on a bigger car. Don't know. But at least in my case, cents/mile is about the same.
With my typical city/town driving, I get 32-35 mpg with 87 octane, and typically 26-30 with E85.
Regular 87 octane is $3.12 around me here, and E85 is $2.71. E85 works out around 12% cheaper.
Fuel blending for optimal combustion characteristics is a complicated business, most of what people claim about this issue is not very reliable.
That's exactly my point. Would it be possible to design an engine from the ground up for very high octane fuels?
Stock cars generally don't take full advantage of the octane benefits of E85 because they will blow up if someone fills the tank with E15. But in the aftermarket world, "corn powered" cars make substantially more power, especially turbocharged ones. They have the benefit of owners that understand to manually switch maps when changing fuels.
The more typical way to do this is have a turbocharger (supercharger... I can never remember the difference and which you want when). You and run more boost which increases the compression ratio. However this requires an expensive turbo and so isn't a popular option.
I'm not sure why turbo cars have not made these modifications though. There are probably other trade offs I'm not aware of.