E85's stoich Air/Fuel ratio is 10:1 compared to gasoline's 14.7:1, so yes, you'd run lean.
I've tried it already in a non-FFV ('97 Grand Prix), and perfomance was incredible at WOT, but cold starting and partial-throttle response was not good. I didn't get any check engine lights, nor did anything happen to the fuel system components, but my MPG was terrible. I think I only got around 11 MPG on that tank.
As for running so lean you'd damage something...Unlikely. Ethanol, unlike gasoline, does not "ping" or detonate when it's running too lean. It just makes less power.
The alcohol fueled race cars (they run methanol, but similar properties) never have the detonation problems that the gassers have. If they run lean, it's a dog, but nothing serious happens to the internals. I'm at the racetrack every weekend, and rarely have I seen an alky car grenade its engine due to an improperly tuned carb or too much spark advance. With a gasser, it happens all the time. Happened to me. Had a distributor flyweight come off and allowed the mechanical advance to go way off the chart, and it melted two pistons.
