I'm by no means bashing E85. I think it's a great idea, but it does have its drawbacks as well, as with any setup - in the Ethanol setup, you just lose gas mileage.
I wouldn't hesitate to run if, if the car was set up to do so, but I just dont feel like having to order a drum of it or find a station that has a pump. If we lived in Charlotte, that's a different story.
The M3's DME is quite interesting. You're right, it advances timing up until it feels knock, then it figured out a nice threshold. Even running race gas on non-blown M3s has shown performance gains even on the dyno, simply because the stock ECU will advance timing accordingly. Its really cool!
I hope you didn't think I was bashing your setup, it's sweet! I just wanted to make sure Dustin knew there were drawbacks even to E85.