Ethanol never was a miracle fuel for internal combustion engines. Internal combustion engines are not miracle machines. They are merely the best compromise on a relatively cheap, compact power source available today.
BTW, ethanol can be made directly from a petroleum derivative, ethane, by combining it with water vapor and cutting an OH radical in with the ethane molecule by use of a catalyst. Ethanol, or ethyl alcohol, and free hydrogen result from this reaction.
Most ethanol is made by cooking corn with natural gas. Nat. gas is a high rank fuel and could be used as a motor fuel. So, why go to the trouble of raising government-subsidized corn ?