Some misconceptions going on here. The corn that is used to produce ethanol is not human food, it's animal food, and much of it damaged beyond use as animal food. After the ethanol is produced, the Brewer Grains left are animal foods that have some of the food value enhanced by the fermentation process. The ethanol is added to gasoline as an oxygenate that helps reduce some types of pollution. There is a net gain in energy in growing corn for ethanol now; there didn't use to be. The latest research is in biomass production of ethanol useing wood chips, weeds, grass, etc., so the "food" corn being used for ethanol production may soon be a specious argument. Remember, this industry is still in it's infancy, and is getting better and more efficeint all the time.
Biodiesel is still very much in it's infancy, but shows similar potential for growth and development. For instance, there are several "weeds" that have seeds with a high oil contaent- we may end up growing some of them for fuel some day. Another very promising pilot programm that is producing fuel is one that routes the CO2 from a coal fired power plant thru a "soup" of algae that produce oil from the process of photosynthesis, American ingenuity at it's best!
At the present time, biofuels are not 'the' solution, but they are part of it. The future may hold someting that is completely beyond what we have now. Hydrogen has some unique problems-energy density, the need to be highly compressed, fueling problems. Electric is very limited in potential in the USA due to the distances we travel, besides being a major pollution problem(rare earth mining, nickel mining and processing, coal fired power plants).
And if you think that the tax break for the biofuel industry as well as subsidies for farmers are bad, look at the breaks that the oil industry gets...