Totally agree...when I say that it is stupid for the lobby to leverage energy against food supply, that isn't quite accurate. It is a stupid argument (still), but even more stupid is the fact that our government bought it. Any lobbying group can go out and argue for their cause...that's they way it works....and they are just looking our for their interests (as I noted above). Generally, you need to make a smart case to sell your idea. This just goes to show the power of their lobby - their case doesn't make sense and the government is still buying it.
As for the fuel consumption...that's not a foregone conclusion. The energy content per volume is certainly less with ethanol than gasoline. So, if that were the whole story, fuel consumption would go up. But, ethanol also acts as an "octane booster," which gets the two fuels close on an effective energy per volume standard....which ultimately should decide how far you're able to drive on a tank of gas. I would say that with current engines, gasoline still wins. But, if the engine were tweaked for ethanol use, I have read that they would be very close to equivalent. I'm not sure if that is for 90-10, 80-20 ... or pure ethanol, I can't remember.