Ethanol is bad for many reasons.
Sure, its good for the environment because its made from a crop which absorbs CO2 and puts out O2, and the bi-products are all put to good use. Use 10% ethanol in fuel and the oil reserves last a bit longer.
But the bad points (not in any particular order)
It attacks very many soft metals and plastics, in effect slowly dissolving them
It absorbs moisture which bonds with the ethanol until its too heavy, then the water falls to the bottom of the tank and the ethanol follows it. The first fuel your engine then draws is Ethanol and water, causing it to run very hot,
but ethanol does not bond with most 2 stroke oils, so when your engine runs on the ethanol from the bottom of the tank (assuming there is not too much water present to run at all) there will be no lubrication for the engine and engine damage will quickly occur. The oil will be bonded with the petrol sitting above the ethanol.
The ethanol that has bonded with the water very quickly goes into 'phase separation' At this point the ethanol/water mix forms a gel in the tank and carb. The remaing fuel has a lowered octane rating and, if the machine is lucky enough to start it will destroy itself quickly
Ethanol contains 35% oxygen, way more than petrol so an ethanol rich mix runs lean requiring the fuel/air mix to be richened or a lean sieze can occur.
Petrol with 10% ethanol runs around 10% hotter than petrol, which can cause engine damage.
Ethanol vaporises easily causing more hot start issues due to vapor lock.
Ethanol encourages galvanic corrosion, so dissimilar metals corrode when in contact, e.g brass and aluminium in carbs.
Ethanol speeds up the decay of the petrol, and encourages the seperation of the oil from the petrol, so petrol over a month old really should not be used.
Many scored pistons are blamed on the operator not having mixed sufficient oil with his petrol, but are in reality due to phase seperated, stale fuel.
There are many more negatives, but I think this covers the main issues.