E-85 is a real bargain now but once there is a demand for it, I would bet the price will be right up there with regular. Sure wouldn't want the oil companys to take a beating on it.
Not if one considers the inherent inefficiencies of ethanol. Unsubsidized ethanol only becomes attractive (today) when gasoline costs, net of taxes, exceed $5.00 per gallon. The big drawbacks for ethanol are distribution and lack of refining (fermenting) capacity. If we could get a judge Green to force the oil and refining companies to give away their facilities at cost, we might be on to something. I do not see that happening in the short term.