E85 is great for the corn belt states.
And even if you simply keep it within 500 miles of the Mississippi, that leaves more gasoline for the coasts.
Ethanol costs $1.15 per gallon to manufacture, and sells in many corn belt states for $2.15 per gallon.

Ethanol gives less MPG, true. But every drop of E85 you burn this year, is grown back next year. It took 100 million years to make the gasoline you burned today.

If it takes 20% more ethanol to go the same distance as gasoline, but costs 30% less ( $2 a gal. vs. $3 a gal. ) then it is still a good buy for the consumer.

I would buy ethanol every tank, so long as it was about 20% cheaper.
More than 20% cheaper is like getting free gas in your tank, or money in your wallet.

And would you rather have 25 cents of every dollar you spend on fuel go to Iraq? Or a mid-western farmer? I'd rather keep the money in the USA.
Even if ethanol cost slightly more than gasoline. ( it doesn't right now )

If gasoline drops to $1.50 a gallon, ethanol is going to be a tough sell.
Right now, it's an easy sell, and a win-win in my book.