Water in the air dissolves into the ethanol fuel ( which is not petrol ). These water molecules can, under the right conditions react with the ethanol.
The new product is highly conductive so sets up a galvanic reaction in the bottom of the carb float bowl which can eat into the zinc or aluminium and destroy the carburettor.
Bacteria can grow in this water/ethanol mix and forms a yellow / white goo, just the same as bacteria used to grow in the fuel tanks of the old formual diesel.
Ethanol attacks ( dissolves ) the binders used in some rubber products and latex ( natural rubber ) which is now cheaper than the carbon black used in synthetic rubber so a lot of rubber blends now contain the maximum allowable latex ( slightly higer if it is cheap Chineese in origin ).
Ethanol also will cause unstabilized brass to dezinkify , again not a problem with USA made brasses that are all stabilised but not necessarily the same with again, cheap Chineese brass.
By now all parts made for small engine are supposed to be stable in 10% ethanol mixtures so "eating your engine" is not the problem it was 20 years ago.
However gunking up your fuel is is still a problem if you leave it for long enough, if the weather in your region is right and if the actual fuel blend is right.
Thus the results will vary, it will be a problem for some and not for others. Too many if's so best to avoid the chances as the price differential over a full year would not come to the same as a single carb repair/replacement.
You might like to go the the fuel companies tech pages and read the storage conditions from the very companies that make the stuff.
Or to here
ethanol | Search Results | The Blog at Jacks Small Engines and read what a company that has no vested interest in your equipment repair says.
And as for Ric's "revelation" ,
The solvent carrier needed to deliver the mixture of chemicals sold as stabilisers must be able to hold these chemicals in solution without altering their chemistry and must also be soluable in the stuff ( fuel ) it is being added to.
He has obviously never used stabilizers or he would have noticed that the jar is sealed air tight.
Further if you can do the math ( Ric seems to have a problem with it ) 2oz to 4 oz per gallon @ 50% ethanol increases the ethanol content by 1.5%, if & only if the ethanol is free ethanol, which it is not because it is bound to the surfactants and totally stable.