While I'm not a slashcan and his rants fan. He's correct about the costing more to make then getting, it's an out and out gift to the corn farmers of america.
Also the engines made to run on alcohol are tuned very very differently then a gas motor.
About the power thing:
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Before electronic fuel injection (EFI) and computerized engine management, the lower energy content of ethanol required engine carburetors to be rejetted to permit a larger volume of fuel to mix with the intake air. EFI is able to actively compensate for varying fuel energy densities by monitoring the oxygen content of exhaust gases. However, a standard EFI gasoline engine can typically only tolerate up to 10% ethanol and 90% gasoline. Higher ethanol ratios require either larger-volume fuel injectors or an increase in fuel rail pressure to deliver the greater liquid volume needed to equal the energy content of pure gasoline.
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Ethanol - Wikipedia, the free encyclopedia