Sell you car and buy a Geo then.

Running lower octane fuel will cause detonation. Yes the knock sensor catches most of it. Key word being MOST. Nothing is 100%
Also light detonation is not caught.
During very hot weather engine damage is possible (albeit not very likely) if you go WOT.
Yes your performance will drop off noticeably. As will your timing curve and
fuel mileage. 'nuff said
If you have a 2000 model DO NOT even think about running low octane fuel. Mine detonated on cheap 91 octane the only time I was forced to run it.
I couldn't imagine how bad it would have been if I had a chip or any real mods at the time.