I agree with Bill! The ethanol probably didn't hurt a thing! There are no 100% FAA legal airplanes (not even new ..... give me a flashlight, inspection mirror, and some free time and I can prove it!) The price is higher than most comparable 172's. You're paying for the low total times here, and that may be overpriced, too!
It's like finding a 1965 Mustang convertable with only 10,000 miles on it! Some people would pay a lot extra for it above others, just because of the low miles! I wouldn't, because then I wouldn't want to drive it! I can't afford to buy a vehicle just to look at it!
If it fits your criteria, don't let a little past ethanol stand in your way (it's previous use doesn't make the airplane illegal, even though it's use was). If it was going to be a problem, you'd already see the affects.
O-300 vs. O-320
Personally, I like the Continental's smoothness (6 cylinders) but the lycoming powered 172's do have more power.
