I trust the numbers in Paul's original post, and I agree with the immediate results of his calculations, but I disagree with some of his interpretive statements.
Based on his numbers, to travel 300 miles not only requires more hydrocarbon/ethanol fuel blend, but actually more of the hydrocarbon component as well.
The first part is not surprising: since the energy density per liter of ethanol burning to CO2 and water is lower than the volumetric energy density of hydrocarbon fuels, any blend must have less bang per volume of fuel.
The second part is more interesting, since not only is the ethanol a less efficient fuel, but it makes the hydrocarbon it's mixed with less fuel efficient, "wasting" fuel and contributing to global warming, because the excess hydrocarbon fuel used is NOT carbon neutral. Why would anybody cheese off both the left and the right wing by mandating ethanol use? Corruption? Bureaucratic stupidity?
Try science and environmental policy from before the climate change and energy supply issues took center stage.
The requirement to add ethanol to automotive fuel was instituted to change the chemistry in the combustion chamber, predominantly by introducing additional oxygen, in order to minimize the generation of precursors of photochemical smog.
The addition of ethanol was driven by clean air concerns, not fuel efficiency or climate change arguments, and based on personal experience it has in fact worked. One can reduce dependency on foreign oil and CO2 emitted by automobiles, but are we willing to go back to the days of the brown clouds? It's an unpleasant trade-off to consider, but it isn't going away without major changes in transportation technology and practices.