definitely there's no free lunch... but the number of alternative vehicle prototypes out there that all are shooting for the same ground is indicative of where we should be going. and the complete and utter lack of interest in this direction by government and the existing industry is a sure sign of lack of will to change.
there was a post not so long ago about the zap electric vehichle... sold world wide, made in canada but canadians unable to drive one!
just to respond to some of your point though....
- electricity may come from fossil sources in any case, but the automobile internal combustion engine is one of the least efficient devices around! centralized power production is from fossil fuels is far more efficient because of available technology used by big plants.
- the saftey issues are important. but so far, government has been mandating in the absolute wrong direction in favor of huge vehicles. take the neighborhood electric vehicle (nev). these glorified golf carts are mandated at (conveniently) just below common road speeds (i'm sure just to ensure these cheap and efficient means of transportation are completely unattractive to local commuters). why can't we imagine a world where big heavy gas gusslers are mandated to lower speeds so that smaller, lighter vehicles do not need to pass side and rear impact tests with trucks at high speeds?
either way, just one look at this and many other new hybrid and electric vehicles (the big stupid excuses for hybrids in the form of suv's aside... what a farce!) makes it apparent where the future of personal transportation lies. its too bad that government has turned a blind eye to all of it!