I agree with 9krpm, the fact that Ethanol has more oxygen in it means it is has less potential to burn because it is already down the path of oxidation. Therefore more fuel is required for the same bang and the bang is smaller at the same time.
On balance, I reckon Ethanol in fuel is crap.
Toluene is good because it is hard to burn so you can then run more timing with a lower isk of pinging. It also produces a bang equivalent to or better than say straight 98 octane petrol. They say BP98 does not use aromatics (like Toluene) to achieve 98 octane, so when you do add Toluene in, the Octane rating increases more readily.