Why is ethanol bad? We generate it from biowaste in Europe.
I recall watching an uncle rebuild grandma's carburetor, because her car kept flooding. He shows me part of the original fuel jet and the replacement. The new one has a little synthetic grommet on it, the old one has an empty notch in the same spot. They blamed it on the ethanol.
Most likely what will happens is that those uses that can be electrified will be (cars, city buses, light trucks etc.). Biobased fuels, synthetic fuels, hydrogen and so on will have a role for transportation sectors where electricity is not an option (long range planes, ships, trucks).