...Although e85 doesn't contain as much energy per unit a lot more units are used - ie "richer", something like 30 percent more fuel for the same event. Running e85 can mean bigger injectors etc...
Exactly. That's where the fuel composition sensor comes in (for EFI). It tells the ECU what percentage of the fuel is gas and what percentage is alcohol, then the ECU adjusts the injector pulse width as appropriate; i.e., longer pulse width for E-85. When you increase the performance of an EFI engine, say through adding a more aggressive cam, you may end up needing larger injectors if the current injectors at 100% pulse width will not supply a quantity of fuel great enough to contain the energy needed by the engine. For example, you may need to go from 30 lb/hr injectors to 40 lb/hr injectors (or 48 lb/hr, etc.).
Relating this back to Scott's post, you will only see a difference in performance for a carburated vehicle or an EFI vehicle that does not have a fuel composition sensor (with a caveat on the EFI system: the ECU will try to adjust the conditions it sees to its programmed settings, so there will be some adjustments made and, hence, the power difference will not be as great as for a carburated vehicle...which of course cannot adjust to the conditions; there is even some debate about whether an EFI system even needs the fuel composition sensor to run E-85 or will be able to adjust based on the other sensor inputs). An EFI vehicle with a fuel composition sensor will show no difference in performance between E-85 and pure gasoline (in theory) because it is adjusting injector pulse width to match the energy content of the fuel passing the sensor at that given moment.
Bringing this back to the discussion of octane, lead (tetra-ethyl lead) was added to gasoline because of its anti-knock properties (it also has some lubricating properties, which is a completely different discussion, but the reason older cylinder heads need to have hardened valve seats inserted when they are rebuilt). Unleaded fuel (at least in the US) has MTBE added in place of lead to improve the anti-knock properties of the fuel; in other words, to increase the octane rating of the fuel. MTBE is methyl tertiary butyl ether.
So, if you take pure gasoline of octane rating XYZ and add lead (or MTBE) to it, you will end up with an octane rating greater than XYZ. However, there is no difference in the level of refinement between unleaded and leaded gasoline. The two are taken from the same point in the cracking tower at the refinery, just different additives have been included down the processing line. One is no more or less refined than the other, and contains no more or no less energy than the other (prior to inclusion of the additives). So, the theory that adding leaded fuel to unleaded fuel will result in an octane rating that is higher than either of the two blends you started with is incorrect. As I stated before, it is impossible to blend two fuels and end up with a higher octane than either of the base fuels (without including more additives). It's quite simple, you are spreading the additives contained in the higher-octane fuel (that result in the higher octane rating) over a larger volume of fuel without increasing the volume of additives.
By the way, "octane" is an actual molecule, but what we are talking about is the "octane number." Octane the molecule is C8H18 (but there are many isomers). The "octane number" compares the anti-knock properties of a fuel to those of octane the molecule (specifically, its isomer 2,2,4-trimethylpentane, commonly known as isooctane). Octane the molecue is a hydrocarbon (because it consists of C and H) and is naturally present in refined gasoline.
And a final note, what defines the "advertised" octane rating varies from country to country. As I stated in a previous post, in the US, the advertised octane rating is an average of research octane number and motor octane number: (R+M)/2. In other countries, the advertised octane number may be the research octane number, the motor octane number, or the average. (There's probably at least one country that does something completely different.)
Hopefully this has helped clarified "octane" a bit.
Eric