Not to mention its high level of toxicity and ability to be absorbed through the skin or breathing the fumes.
I wouldn't advise drinking, bathing in or inhaling the fumes of gasoline either, but we manage to use that as a fuel. In fact methanol is less toxic than gasoline. So to follow your argument we need to get rid of all those dangerous gas stations.
METHANOL VS. GASOLINE—CONTRAST AND COMPARISON"
Speaking of gas stations in event of a fire methanol or ethanol can be put out with water. Also in event of a fuel spill they dilute rapidly in water and break down by UV from sunlight. An Exxon Valdez with methanol would be no big deal as the alcohol would rapidly be diluted by the ocean. With ethanol it would be even less so.
In fact methanol is less toxic than gasoline.
I understand that to be false. Also methanol has significant skin absorption issues compared to gasoline.
MSDS sheets shows the exposure limit for methanol to 200~260 ppm and 300~500 ppm for gasoline.
http://www.midi-inc.com/pdf/MSDS_Methanol.pdf
http://www.valero.com/V_MSDS/002%20-%20UNLEADED%20GASOLINE.pdf
You can put out a methanol fire with water, but you cannot see the fire to know it is even burning until it spreads to something else. It is very difficult to find and extinguish a fire you cannot see. If the methanol fire is not contained, water will spread it without it being seen.