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Absolutely true. Ethanol plants run more efficently and profitably if all the other stuff is removed before making ethanol, and that 'other stuff' has significant uses and value, including but not exclusively food products.

Besides, the future of fuel is butanol, which can be made from any plant matter, not just corn.

"Besides, the future of fuel is butanol, which can be made from any plant matter, not just corn."

Butanol is just another form of alcohol. It has a higher energy content than ethanol and can be distributed through existing pipelines, and it will work in unmodified gasoline vehicles. The problem is that it is significantly more expensive to produce than ethanol. So much so that I wouldn't count on it being "the future of fuel." As for being able to produce it with any plant matter, the same can be said for ethanol. The problem there again is costs. Neither ethanol nor butanol will ever be the "future of fuel" unless costs come down and per acre yields go way up into the thousands of gallons per acre range. No matter what though ethanol will most likely always be significantly cheaper to produce than bio-butanol. Butanol is a more complex fuel requiring more processing to produce. Most butanol on the market today by the way is made from petroleum, and it's a lot more expensive than gasoline.