Building a better, high performace engine is certainly one of the nice things about ethanol, But I don't think you understand the reasons why.
You are dead wrong in thinking that you will get better fuel economy, as you need to burn more ethanol than you would gasoline.
The reason you can develop more power is because ethanol has a higher detonation point , allowing you to raise compression ratio's back to what they were when they used to build good motors.
You need to open up/ replace fuel jets in carberators with bigger ones however, as it takes more ethanol to produce the same amount of power at temperatures that don't melt your valves and pistons.
So, although you will have a very clean running engine, not only will you be paying much more for a gallon of ethanol E85, you won't get as far down the road with it either. (But it would be a little more fun)
It is not the only commitment we need. You see the Military is a driver, Eisenhower's need for roads, the highway system, ditto the Internet. In the early 80's there were R & D programs for engines without cooling (and almost no lubrication system) for military Trucks the "Adiabatic Engines". They were prototyped and tested and were potentially omnivorous. Also A Wankel Program was afoot, the S.C.O.R.E. program, that engine was omnivorous.
These engines used a lot of expensive materials, but what I think may have been missing from these programs was control, i.e. electronic engine controls.
What is going on right now that may or may not be a driver is the 2010 NATO requirement that all engines in the military fleet need to run on JP5 and JP8.
In my opinion, the national commitment should be for an engine that is truly omnivorous.
An engine that is omnivorous at this point would be a big cost reducer for the big 3 if they truly want a world platform that doesn't require different engines for different markets. Also, the overlooked fuel at this point? natural gas (CNG LPG). I have been reading in certain parts of the world it is much cheaper (as much as 70%) than gasoline not to mention cleaner. Keep you eye on it, I seems to be building momentum.
"...The farmers will get rich anyway you work this..."
This is a problem?
Ann