ModMech, I cannot agree with your 1st contention. Cost per mile is higher.
My 2015 2500HD 6.0L. When on regular, the fuel economy average is around 14.5 mpg for all miles... hauling, empty, off road, in town, rural highways, gravel roads. The cost for the fuel right now, in my area, is $2.37 a gallon. That equates to a per mile fuel cost of roughly 16.3 cents a mile.
When using E85, as it is now, the fuel economy average is roughly 12.7 mpg. E85 in my area is at $1.84 a gallon. that equates to approximately 14.5 cents a mile, or roughly a 2 cent a mile savings.
Lower fuel economy does not equate to higher cost per mile. A common misconception.
As for the food to fuel argument, it shows a myopic view of what goes on in development of animal and poultry feed. The dried distillers grain from corn ethanol production is essential for many feed mixtures. I regularly haul a product called Biolys, which is derived from DDG. It is a very good high protein feed supplement that is critical to swine and poultry production. These products are going to be made irregardless of folks perceptions of ethanol production. It requires ethanol production to enable development of some very important feed stocks. DDG derived feed supplements have a high protein ratio, and have been shown to be highly digestible and reduce the incidents of intestinal colitis in both bovine and swine livestock compared to traditional whole kernel corn feed.
And corn oil from ethanol production is also used as a feed stock for biodiesel production. Two fuels from the same bushel of corn! The CO2 from ethanol production is a primary source of CO2 for the beverage industry and many other industrial CO2 needs.
Now, no, ethanol production does not consume 8 gallons of water for production of 1 gallon of ethanol. It is closer to 3. And regular gasoline fuel production is not far behind, at 2.5 gallons of water to produce a gallon of gasoline. A single can of fruit at the grocery store requires over 9. Just the Sunday newspaper requires a whopping 150 gallons of water! Your desire to save the planet's water resources is misplaced. You need to go beat up on some other water users.
Water Use for Ethanol Production - Ethanol - University of Illinois Extension
I hate to burst your ballon, but your contention that those 3 truths are inescapable, are not complete truths at all. They are contentions based on biases and feelings rather than based on statistical data. I digress.... your last contention, or at least part of it, is correct.... most of the ethanol produced in this country is from corn. Not sure that really is a negative though. I admit, I would like to see more ethanol production from other sources like sugar beets.
And corn prices, on an inflation adjusted basis, are lower than they were in the mid 1990's! There is no shortage of corn for livestock, people, etc. If corn was not being used as a primary stock for ethanol production, the price would be cost prohibitive to grow the stuff at all, and everyone would suffer. Shortages would ensue, and prices would rise to such a level that would negatively impact both human and animal food costs. Ethanol production provides a balance to ensure an adequate supply of grains across the spectrum. Economics is not that hard, but seems to be difficult for some. I recommend a book "Basic Economics" by Thomas Sowell. An easy read with great examples that provide a well rounded education on economics.
Oh, the use or all caps to make the point is only valid if it is a legitimate point.
Something you didn't directly address, but seem apropos to the discussion. Net energy. Ethanol production, from planting of corn to harvest to ethanol, has a net positive energy of 1.34 BTU's of energy to every 1 BTU of energy to make the stuff. Even more dramatic, for every 1 BTU of liquid fuel energy to produce ethanol, again from planting to final ethanol, is 6.34 BTU net energy from ethanol.
http://www.transportation.anl.gov/pdfs/AF/265.pdf
http://www.ne-ethanol.org/pdf/net_energy_balance2009.pdf