Nitrogen is 'nice,' but makes zero difference if you check the pressure once or twice a month. (Be sure the tires are truly cold, and re-check when ambient temperatures change markedly) Even if filling with plain air, the nitrogen concentration tends to self-enrich after a few top-offs.
The bigger question is 'what pressure to inflate the tires.'
Handling, tire wear, fuel economy, and hydroplaning resistance are all improved by running higher pressures. Dry grip may decrease slightly.
Keep in mind that the door-frame numbers on your car represent a compromise between engineering requirements and a nice cushy ride. FWIW, my older Honda wagon wears the tread edges badly at the stock pressure of 32 PSI. The tires really need ~36PSI in the front, and a hair more in the rear, to properly support the car. I've been running 40/41 PSI for the last few years with zero negative effects. (Going much higher rapidly degrades the ride quality.) As near as I can tell, the extra pressure gets me about 1.5 extra MPG at freeway speeds, a little over 4%.
As David points out, gasohol does little except reduce the fuel's caloric energy per gallon.
(Stephen, if you find this advice useful, please box up that unloved 5x7 camera of yours and send it my way!
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