A little update on experimenting with E10 and E0 this year. After running both I have seen no difference in the amount of water that ends up in my system. Two days ago, we had a storm run through our area, about 3/4" of rain. Prior to the storm, I had sailed and put the motor to bed by running it out of gas- turning off the fuel switch and closing the integrated tank valve.
Yesterday, my son and I went to the boat and started the motor and it stalled after a couple moments (using E0). We pulled the starter chord then drained the carb a few times, gradually pumping the water into the carb bowl and getting it out. Eventually, the motor started and ran strong. We put the drained fuel in a plastic bottle and measured about 1oz. of water at the bottom of the bottle.
The motor has run well during this very dry Summer, but it seems wet weather (especially when it rains) is affecting it, causing condensation in the fuel lines/carb. That's my guess anyhow. It's not a big deal, as draining the carb only takes a few minutes, but perhaps I'm beginning to see the same stuff that is in the report, that it's not necessarily the fuel as much as it is the moisture in the air causing the problems. 1oz. seems like a lot of water, but I'm not sure of a way to prevent it other than installing a water separating filter, which may not fit inside a 4hp with integrated tank.
Earlier in the Summer, when we had a little more rain I had experimented with not running the fuel lines dry, but the result was the same. Honestly, I'm not that sure it makes a difference either way. I have noticed, however, that the motor runs a lot better on E0, but I suspect that gas may also be higher octane. The chuckleheaded kid at the place I buy it had no idea and there was no rating on the pump.