The main idea of using magnetic beads itself is avoiding of using  toxic solvents such as phenol or chloroform. 

 Phenol or chloroform probably may  be used in washing step but it will rather contaminate than purify DNA. 

HI.

Out of curiosity, why would you wanna replace ethanol washing? As Alexander suggested the crucial role of ethanol wash is to prevent contamination with phenol or other toxic solvents. Ethanol evoporates making it is ideal for such preparations.

You can use isopropanol, however you risk higher contamination as it is less volatile.