We should clarify on the a/f ratios for any future readers as well, in short we do not convert all the tables in the pcm to run ethanol AFR's, we add ~30% fuel to the injector or IFR table so we don't have to switch the AFR's to ethanol, so 14.7 gas afr we are reading is really a 9.76 (85% ethanol stoich afr) 11.5 gas afr is 7.5 e85. You can figure it out by taking gas afr/1.5 = e85 afr. Or switching your wideband to lambda, everything is = 1.0 stoich. This may differ in winter blends, next point...
One of the reasons why you may not want to go too lean is because the mixture in the full summer blend is 85% ethanol + 15% 87 octane =109 Octane is different than the winter blend which is 70% ethanol + 30% 87 octane = 105 octane. You will run .5 - 1.0 leaner reading in gas AFR in the summer than the winter if tune is unchanged, they also gradually change blends in the spring in fall. For that fact you may want to stick with a 11.5 summer tune and run richer or retune in the winter.
All in all, there are guys out there running high timing and in the 12.5+ afrs who say they are making more power, but while you don't see knock you also aren't keeping track of egt's, cylinder pressures, etc. E85 basically "can" free you of knock, but it can't completely free you of head gasket failures/engine problems. It's very forgiving fuel, but i don't see the point of running on the edge to squeeze that extra 10hp out while the a/c is still functional.