Well this method obviously isn't for everyone and every car, but under circumstances it can work well IMO. If you "run a lot of boost and are tuned on the edge" like 1wild-horse above said, you have no business running pump gas anyway...that is certainly a recipe for disaster. But, like I said above, if the car is tuned on the rich side anyway on pump premium (10.5-11.0 at WOT, which is a safe level for a fair amount of boost IMO) there's no problem IMO with leaning it out slightly and adding some octane/cooling in the process by mixing in a couple gallons of E85. Again (like I said above) if the car is already on the edge fuel-wise on pump gas (12.0 or above)...which it shouldn't be anyway unless you are asking for trouble, I wouldn't lean it out by adding ethanol to the mix.
Again, not for every car, but it can be used in the right scenario.
Again, not for every car, but it can be used in the right scenario.