Good to see a sense of humour coming back to this discussion.
Ethanol being produced from green crops [can be sugar cane, can be corn, can be lots of things] ensures it is CO2 neutral, because the CO2 it releases to the atmosphere is re-absorbed in the growing process. As CO2 is known to be a major contributor to global warming, then by that definition using ethanol fuel is a Good Thing, at least it's less harmful than gasoline.
It is costly to produce at present, but not gallon for gallon. Production percentage costs in the US can be around 75% mark, but in Brazil their advanced production distillation methods with sugar cane are way better, about 25%, so improvements are on the cards for the future.
The only grey clouds on the horizon are the ones you mention Ben, massive production will require massive acreage. This in turn will use up possible food production acreage, and world food surpluses are being used up very quickly over the last few years.
So there is yin and yang, as with everything else.
Because ethanol fuel comes from a renewable source, unlike oil, which is dwindling, it has to figure as a fuel for the future. Propane can be generated from coal stocks too, so there will always be a place for that fuel as well in reciprocating engines, so long as the price structure suits.
Joe