your more right than you know, only its not water... its ethanol...
ethanol is a shitty fuel... gives you less MPG... gives you less power... causes added wear to your engine
so less MPG right off the bat... thats pretty easy
but then less power, meaning you need to drive harder to get the same performance (or close to it)... the more you are on the pedal, the lower your MPG
and it doesnt have the lubricating properties that gasoline has, meaning it causes more wear and tear to your engine... reducing the life of your car
so if you dont think ethanol sucks ass already, think about the fact that the ethanol we use mainly comes from corn... that causes a reduced supply of corn available for market... that causes the cost of corn to rise... that causes the cost of feed to rise, that causes the cost of any product coming from anything that eats corn based feed to rise... chicken, eggs, beef, milk, cheese, pork, leather, wool, etc etc etc
there is generally 10% (or more) ethanol in most fuels sold around the US... with e85 (85% ethanol based fuels) gaining in popularity... guess what is going to happen to corn prices then... and you should be able to figure out the trickle down effect of that already (heres a hint $$$$$$$$$$$).... oh yeah... and the fact that you have to drive harder, using more fuel, means your car is belching out more pollutants per mile... thus completely negating the whole damn point of putting ethanol into the fuel in the first place
so while you are paying more money for gas that doesnt get you as far, to get to the store to buy products that cost more, in your car that isnt going to last as long... remember that ethanol is our savior from the evils of foreign fuels