If the car is going to be a daily driver the higher compression will be the ticket for sure. Street/Strip car going for max power keep the compression where its at and turn the wick up.
The cooling effect is indeed a great by product of E-85, but understand that most of the cooling occurs @ WOT where the mixtures are the richest. Under normal driving the engine will have piston dome temps similar to a gasoline engine. Having said that, the cooling effect @ WOT has allowed me with a stock intercooler and stock turbo to run higher boost than I normally would be able to even with alky injection and 93 octane. The cooling effect of E-85 easily eclipses alky injection.
I can hot lap the car and run back to back to back times.
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1987 ME-R , 83#, TA-61 ,24 Row Mease Stock Location, Hurst Lightining Rods and some other stuff, Sleeping right now
1987 White Turbo-T
E85Daily Driver
Who says the stock turbo can't make power
Need chips, go here:
Http://www.turbotweak.com
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It is what you learn after
"You know Everything" that is the most important.