Those Los Alamos guys [1] said in 2007 they could get it down to $3.40 a gallon. Okay, maybe they were wrong and/or optimistic. But, still, there is some price point at which it is break-even. What is it? Five dollars? Ten?
The advantages of this over electrifying everything are that we already have built up the infrastructure for liquid fossil fuels. There is no extra engineering to be done for storage and/or transport, and no environmental impact from building new facilities like battery factories or erecting more transmission towers.
In both technologies, you start with an energy source, and then distribute it to consumers who use the product up. Both are carbon-neutral once you get past the "have the centralized energy source" step.
[1] http://bioage.typepad.com/greencarcongress/docs/greenfreedom...
[2] http://www.nytimes.com/2008/02/19/science/19carb.html?_r=0