(1) It takes more fossil energy to make it than just to use the
fossil fuel in the first place.


That statement isn't true for ethonol. Intresting enough, it is true for
electricity.


(2) When it is pointed out that you can make the bio fuels using
other energy sources such as hydroelectric, solar, or even by
burning part of the biomass then it costs too much.

This statement is true.


Here's the deal. I have a truck that will burn E85 without modifications. I
simply pull up to the pump, fill'er up, and drive away. There is a pump that
is on a route that I pass about once per week. When gas got really high a
couple of months ago, I did just that because I could get e85 about $.20 per
gallon cheaper. Now that gas has gone down, the price of E85 is about the
same as gasoline, but I take a 15% hit in fuel economy. When it becomes more
economical (for whatever reason)to burn E85 than gasoline, that's what I,
and many others will do. In the mean time, I know very few people that will
use it when it takes extra money out of their pocket.