My car and pickup are designed to handle ethanol gasoline. My small equipment are not. I have to pay a $.50 premium for straight premium because the only regular gas is blended. I should have a choice.
I've heard this argument about small engines forever, but in the 40 odd years I've been using ethanol blended gas, I've never noticed anything "special" about small engines that makes them prone to damage from ethanol. And at this point, if they can't handle the blend, that's on the engine manufacturers, IMO.
If people are seeing issues with small engines, I suspect it is because of the way they are used. With a car, you fill up, use the gas in a week or two, and get more. But with small engines, often you'll (not saying you personally, of course) buy a five gallon can which sits around gathering moisture out of the air for the few months it takes to go through.
That being said, I think the blend idea is stupid, and mandates and subsidies are just down right wrong.