I would not hesitate to use stainless bolts for: intake manifold, carb, Water pump, most accessories, valve covers, oil pan..
Where I would not use them: fan, crank pulleys, any internal fasteners, flywheel, clutch, heads, oil pump.
You don't buy ANY of these at Home Hardware and the like!
Not being hard is a myth. Stainless bolts will have a Rockwell core hardness hardness in the C32 range. By comparison a standard grade 5 is in the C34 range and grade 8 in the C33-39 range. The real difference is in the yield strength with stainless being about half that of a grade 8.
Where stainless is widely used, the sizes of the fasteners would be enlarged to compensate for the difference in strength.