All of the common alcohols have lower heating values than gasoline components. So does nitromethane for that matter. The power gains come from the fact that you can put more fuel in the cylinder since the A/F ratio is lower.

Fuel Heating Value (BTU/lb higher) Stoich. A/F

Toluene 18,245 13.5
Iso-Octane 20,556 15.1
Methanol 9,770 6.4
Ethanol 12,780 9.0
Nitromethane 5,160 1.7

An approximation to the power potential (my terminology, not from the engineering text books) of the fuel is to divide the heating value by the A/F ratio. I'm a little fuzzy on all this since I took a class in college on internal combustion engines twenty years ago. I think it's pretty close to what is right.

Fuel Heating Value / Stoich. A/F = Power Potential

Toluene 18,245 / 13.5 = 1351
Iso-Octane 20,556 / 15.1 = 1361
Methanol 9,770 / 6.4 = 1527
Ethanol 12,780 / 9.0 = 1420
Nitromethane 5,160 / 1.7 = 3035

I think from this you can see why methanol makes more power than gasoline. And it should really be obvious that nitro will make twice as much power as methanol (assuming you could run 100% nitro).

I don't think the octane rating is as great as you seem to think, but results are results. The difference between the RON and MON octane numbers gives the SENSITIVITY of the fuel to changes in load, speed and temperature.

Fuel RON MON Sensitivity

Toluene 120 109 11
Iso-Octane 100 100 0
Methanol 106 92 14
Ethanol 107 89 18
Nitromethane not rated, but probably close to zero

I know guys that run methanol in their dirt track Shivies and they run less timing than with race gasoline. I think this is due to a relatively low octane rating, particularly the MON numbers which is the more severe test and gives a lower number accordingly for most fuels. I'd watch for signs of detonation closely if it was my engine. But for pump fuel, it's better than the 93 premium.

QuickD100: let me know how the optimum timing is for E85 vs. race gas if you have the data. I'd be interested in your test results.