Model T's were produced from 1907 to 1927. The first gasoline pipeline was built in 1918 in WY. and it was 40 miles long. Model T's were designed to run on what ever was available, even homebrew. The first concrete highway was built in 1913 in Arkansas (22 miles long). Can you imagine trying to drive from Ohio to New York in 1914 with dirt roads, pathetic tires and VERY FEW gas stations.
IMHO we have ethanol in our gasoline for two reasons. Iowa is one of the early presidential primary's (caucus in this case). Collectively farmers have way too much influence on national policy and politics.
IF commercial fisherman had greater influence in Wash. DC than farmers, we would be talking about F85 and the effects of mixing Fish Oil with gasoline as a substitute for MTBE. 
"MTBE was added as an "oxygenate", as is Ethanol."
An MTBE became an environmental nightmare. And grain based Ethanol is the "fuel instead of food" nightmare. If airlines were run like the federal government, we would NEVER fly!