The technology already exists for highly efficient commuter cars without the need/extra cost for hybrids and the such.
This project is a prime example. I doubt the 20HP version would sell well in the states, but the 50Hp version would suit me just fine, and still theoretically get around 100MPG; quick calc in my head.
Ethanol right now is just a political gimmick.
Bush meets again with the Big 3
It costs automakers $50 extra to make a car able to use "flex-fuel". They get a credit towards meeting fuel standards, even though right now ethanol replaces about 1% of gas in parts of this country; the assumption is 50% when they're given the credit if I remember correctly.
It should be interesting what this new Supreme Court ruling about the EPA & gas mileage brings about.