Yes most of the gasoline in the U.S. has up to 10% Ethanol, although some fuel stations
sell 100% gasoline at an increased cost, and it can be better for older engines. Newer engines are fine with 10% Ethanol and E-85
should be reserved for flex fuel rated engines or high performance/high compression applications with special components to resist the alcohol and increased octane.
Also like you stated, the Ethanol will be consumed at a higher rate than gasoline. So in a flex fuel application, some of the cost savings is lost to slightly higher fuel consumption. However the benefit in a performance engine is much greater because Ethanol will produce more horsepower than standard gasoline.