Because those systems *never* reach the same power on ethanol that they do on gasoline, and also never reach the same power (or efficiency) that could be attained on ethanol with a higher static compression ratio. I suppose a forced-induction system with the boost pressure under computer control could live in the best of both worlds, but AFIAK there aren't any forced-induction FFVs out there right now. Which kinda tells me that the automakers are still hedging their bets when it comes to FFV.
Oh, I agree its a good club over the head for OPEC and the gasoline tax fiends. My only point in being critical of ethanol is really that biodiesel has an inherent advantage because it works right now without any changes to the engines (or even engine management systems) at all.