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I blended my last tank of gas up to about 35% last time just as an experiment, I have a lowly 10:1 compression 1ZZ. Gas mileage dropped some amount approximately in line with BTU content as far as I could tell. In theory I should have seen a power increase, but my butt dyno isn't well calibrated.
What it did do though was make my engine run noticably smoother at low rpm. Engine made less noise on cold starts. On an engine with raised compression, blending E85 with 87 is a cost effective way to get higher octane fuel since E85 even in California is about the same price as 91 fuel per BTU but you need a whole lot less E85 to raise the effective octane of a tank.
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