Actually…not quite. The problem with E85 is that it provides 30% less energy than gasoline. As such, you need a means to be able to make up for the power losses associated with running a less combustible fuel. While throwing timing at it does help to a certain extent, you need to raise your compression in order to notice any gains associated with running e85. While I can not confirm your claim that the big OEM's show torque/hp increases while running e85 fuels (I'd like to see data that supports this), there is a valid explanation for such. If you look at today's vehicles in general, compression ratios are significantly up compared to a decade ago. Computers now will retard timing based on the types of fuel you use (some use a knock sensor)…and even switching between 87 and 93 octane gasoline can quite often lead to a change in engine performance. Because of this, I could see a slight performance difference in higher compression OEM setups running e85.
With that said, most other vehicles will not see a power gain…and retrofitting on a vehicle designed to run on 87 octane fuel will do nothing but diminish h/p and torque. You can throw as much timing as you'd like at it…but in the end, you need to raise your compression ratio (either internally in the engine or via. forced induction) to be able to benefit from using E85.