Ethanol enhances octane.
"Octane" BTW is nothing but a measure of a fuel's resistance to preignition.
It doesn't create more power, it just allows the engine to be tuned to make more power, i.e. have higher compression.
It's pretty much wishful thinking to think there are significant secrets like this out there.
This is the first post of yours--at least, that I've read--that makes sense. Bravo...I believe you are exactly right on every count.
Also, the term octane cannot be applied to diesel oil. The term associated with diesel is CETANE.