It's been on forecourts for years, and as such manufacturers are engineering their fuel systems to cope with it and not cause warrenty issues.
Not true. If you own an expensive car it may be fully compatible but most cars and bikes are certainly not compatible with ethanol based fuels, despite the fact that such fuels are in widespread use worldwide.
One great example of how else you are wrong is that Brazil has been heavily reliant upon bio-ethanol in its fuel for a number of years and for a number of reasons. However, the blends they use (by legal madate) vary both due to cop hauls and also demand from overseas customers. As for growing worthwhile crops in the desert...........
Anyway, the solution to all of this, the fuel cell, has been neatly brushed under the carpet by the hybrid and biofuel movements, something that personally I find far more worrying since the fuel source is fundamentally free and massively abundant.