It is true that ethanol has substantially higher latent heat of evaporation, compared to gasoline. That's why when you brush alcohol on your skin and blow on it, it feels quite cold. Try to do that with gasoline (actually you really shouldn't), and the cooling effect is not as strong. What this does is to reduce the intake charge temperature, which in turn lowers the combustion chamber temp just prior to ignition. The result is less likelihood for auto-ignition/pinging/detonation, which allows the ECU to advance timing for improved efficiency and to produce more power... and for turbo engines, safe running of higher boost pressures.
This doesn't really have much of an effect on the spark plug temperature.
FWIW, water has an even higher latent heat of evaporation than ethanol. That is why injection of water/alcohol became widely used in WWII aviation supercharged engines. Water provides the primary cooling effect, and alcohol provides additional fuel enrichment and anti-freeze properties.