...The advantage comes in that while it releases huge amounts of CO2, all of that came from the atmosphere so it is carbon neutral....
I have always hated the term carbon neutral. Technically burning oil is carbon neutral because it just got it carbon from some natural deposit that got its carbon from some sort of food which got its carbon from the plants that got their carbon from the atmosphere. Of course if we do not burn the oil that carbon will stay in the ground instead of being pumped into the atmosphere.
For some reason our society has really focused on CO2 as the worst culprit of auto exhaust, when, in my opinion, SOx, NOx, and Ozone are much worse offenders. Ethanol releases more ozone into the atmosphere which is much more dangerous than CO2 (at least in the short term).
http://www.relocalize.net/ethanol_pollution_worse_than_gasoline
The Bush administration has even allowed ethanol production plants to pollute more than other plants in order to spur the production of ethanol. The only benefit I see to this fuel is to reduce our dependency on foreign oil and to make our farmers more money -- though it is really only helping corn growers because anyone who feeds their animals corn has to pay additional prices since so much corn is being used to make ethanol. tTis leads to higher beef costs, etc...