Even if this is correct, there is a legitimate reason to pursue ethanol, even to reduce demand levels for petroleum..
Allow us a cushion to seek other petroleum resources/ get our own online again that shut down for various reason, so we can starve the middle east into submission. Ariana Huffington and co. are wrong to demonize suv owners, but they are right that we enable those who aid the terrorists by continuing our dependency upon arab petrol.. Lets blocade the Arabian peninsula, embargo the persian gulf, not let one drop of arab petrol (save maybe for Iraqi) out, until the terrorism stops... Manmade famine for the Saudis, aw too bad, maybe some of them need to starve to death--it may not be bombs, but that is real TERROR! Take the battle to the enemy! We need to fight the war on terror on every front!
BILLIONS FOR ETHANOL, but not ONE CENT FOR ARAB PETROL!!!
Except that OPEC generally would like to KEEP us dependent on them by pegging the price of oil to a range that keeps alternative fuels non-competitive. Don't forget that there are 2 sides in the Supply-Demand Game.
Of course the crunch comes when production peaks. Some think this has already happened. China is actings as if it has.