In every one of these discussions we keep mixing up the issues.
I have NEVER heard ethanol put forth as an environmental solution. I have ONLY heard it promoted as a way to wean ourselves off petroleum, because of the instability of that market and the political situation in the middle east. As in, if one suitcase nuke detonates in Tel Aviv, suddenly we're paying $9.00 a gallon because the market will panic.
Again we see the debate problem where we try to make it black and white, when we should be looking at a spectrum of solutions. You can't dismiss a solution that's an improvement over where we are, just because it falls short of some ideal (particularly when the ideal isn't attainable without 30 years of infrastructure rebuilding and new power plants).
So, sure, a fleet of electric cars powered from solar and wind is ideal, and maybe that's what we'll have in 2050. But that ideal is light years away from where we are now (figuring out how to charge the vehicles in a few seconds, safely, being just one of the engineering challenges).
So less desirable, but closer to reality, is a fleet of hydrogen powered cars, with the power coming from nuclear power plants. But between now and then is a whole lot of plants that need built, and solutions for the waste.
So the next option down, and more realistic still, is hydrogen powered cars with the power coming from traditional power plants, mostly coal-fired. So now you're producing CO2 but at a much lesser rate than with the current fleet.
Next down on the spectrum is hybrid cars burning biodiesel, more demanding on the environment than the above, but renewable and disconnected from the volatile oil market;
Next down from that is a fleet of hybrid cars burning petroleum;
Next down is regular cars burning biodiesel/petroleum;
Next down is where we are now, a petroleum-powered fleet with a few hybrids and some talk of upping mileage, and praying that unrest in the volatile middle east won't send oil prices skyrocketing.
But every time somebody touts the advantages of any of the half-dozen steps above where we are now on that spectrum, someone else shoots it down because it falls short of the perfect solution (absolutely renewable energy with minimal environmental impact).
I don't feel like those people are being realistic or helpful. Any thread discussing the Prius brings this up, with people talking about how it's a feel-good solution that still burns fossile fuels. Well, right, but it's a step up from what most of us are doing right now.