That's exactly what it means. The OmniFuel can use any Lindal valve fuel canister but not the 16.4oz green propane fuel bottle.

If you're asking where it will run on pure ethanol, then no. But if you are asking if it will run on the ethanol/gasoline mix sold as gas stations for automobiles then yeah it will burn fine.
Stoves designed for alcohol are fantastic for certain situations (simple meals, boiling water, not too cold, no snow melting, any altitude)

I agree. Bad idea! Ethanol has a higher octane rating, 129, but a lower BTU or watt (thermal power produced) rating which is what you need for boiling water. Isobutane, kerosene, & white gas burn much hotter than alcohol plus it's compression could result in an explosion mainly due to it's relatively low flash point.

Not a good idea. It would probably work, but alcohol (and ethanol) burns far hotter than most other fuels, so alcohol stoves release less fuel to cope with the temperatures. Burning alcohol in this stove would likely result in some kind of violent conflagration.

Au contraire! Both white gas & kerosene max out @ 10K BTU's whereas isobutane/propane blends increase, at last count, to 25K BTU's. Granted stove design & gas compression does contribute overall, but you won't get as much heat out of liquid fuel @ this point in time!

It shouldn't harm the stove, but you will see various degrees of performance. Try to avoid unleaded gasoline if at all possible. I would stick with white gas (ie. coleman fuel) whenever you can. White gas is the cleanest and best performing fuel with the highest BTU rating per ounce than any other fuel type. The true benefit of a multi-fuel stove is when an emergency situation bears it's ugly head. It's also a benefit if you travel outside North America. Other than that I would stick with white gas.