brake fluid

I don't notice a spongy pedal in any of my cars. There is slight "lost motion", but that is normal (pads & shoes must move to contact). Racers use glycol because it has a slightly higher boiling point when new and pristine. They probably flush it before every race, plus rebuild the engine and tranny, etc. The main reason silicone is hard to find is because it is not recommended for ABS systems, which are everywhere today. I don't know if there are known problems or it was just never tested and qualified (i.e. accountants & lawyers input).

You are correct. I'm a stability control hydraulic engineer. We only allow Dot 3/4/5.1. The silicone brake fluid is something we don't use due to the higher compressible and it is in some cases incompatible with the materials in the ABS/Stability control module.

The silicone fluid will not trap water molecules in it, however, that doesn't mean you cannot get water in your brake system that would cause corrosion. There is some minor leakage in all systems.

ATE SL.6 or TYP200 are good fluids. The most important thing is that you use fluid only from a new, sealed container.