You can (and some have) use ethanol in dragsters. My old company had one (great fun but they didn’t let me drive it!). The biggest issue is that most dragsters are set up for methanol.
And you can get 100% ethanol as easily as 100% methanol. Using a mole sieve is one way.
I would think that cost is the reason why many racing teams have converted to Ethanol. It stands to reason that Ethanol is more easily attained and at a lower cost. Methanol is made from Coal and I am sure that the demand for it is much lower now. They do burn similar. Methanol is still a better racing fuel than Ethanol. But that said, they absolutely do not belong in regular automobile engines, no matter how new or high tech. The cost and maintenance would be ridiculous.