I think the concern over the hydroscopic nature of ethanol is a bit overblown. Ethanol will help remove water from the fuel system as it combines with water (or is miscible with water) and thus will enable water to travel thru the system and be "burned" (so to speak) before it accumulates in sufficient quantities to block the pickup or cause other problems.
If water was getting into a fuel system it was being pumped in from the gas station....not accumulating from condensation or anything like that.
Water absorption problems by ethanol are a common occurrence and are widely documented. The gas around here can't even be shipped in the same container with the ethanol, it has to be mixed at the station when poured in the tank. And before a gas station can switch to ethanol, they have to totally purge and clean/dry out the tanks.
This is because in the past, when water got into a tank with gas, the water simply sunk to the bottom, so it really didn't cause any harm. Now, with ethanol, the water gets absorbed into the gas.
I really don't care whether the water is coming from moisture absorption from the air, or water in the gas tanks at the pump, all I care about is that ethanol is causing water to get into my fuel system, and for this reason alone, it is not worth using.
And if you don't think the hygroscopic nature of ethanol is a problem, then ask British Petroleum why they are spending millions of dollars to develop a new fuel (called Bupanol) that is not hygroscopic as an ethanol alternative.
To heck with the arguments about less specific energy output from ethanol and decreased gas mileage. Folks are missing the real danger of ethanol, and that is water, and what it does to your fuel system and engine components when introduced into them. Not to mention how it makes the vehicle run.