Yeah.. Brazil has a pretty good model. It's debateable though if that would work in the US at that scale (same percentage penetration to consumers). Sugar cane obviously grows a bit better in Brazil, and they are definitely more de-centralized which makes it a little easier to transistion.
However, why do you think US ethanol producers burn fossile fuel to make it? One word: cost. Once other energy sources become cheaper, they'll start using them.
It's all about the dollar at the end of the day.. That's the one constant you can count on - human nature and greed. I'm banking on it saving us
-Phil