MrRuckus, if you read my second post you'll see that I already know that ethanol is a politically motivated, over hyped myth. As for the cost of corn driving the cost of everything else up, yes it may be, but in my opinion livestock shouldn't be eating corn anyway.
On a side note, milk is supposed to have lots of healthy minerals. Calcium, magnesium, etc. But where do cows get these minerals naturally? From eating grass and other green plants, which contain lots of calcium. (Just look up the calcium content of spinach). Corn on the other hand, not nearly as good.
Sorry I can't find a more definitive source at the moment, but
http://en.wikipedia.org/wiki/High_fructose_corn_syrup mentions why US producers use corn. Due to the subsidizing of corn and tarrifs on sugar, corn syrup is half the price of sugar.
Note that even American companies like Coke and Pepsi sweeten their drinks with REAL sugar outside of North America. I always thought European coke tasted a bit different, now I know at least on of the differences.
Perhaps this will change as ethanol drives up prices, as you say. Or perhaps this run-up will just encourage the production of more corn, and when ethanol is abandoned, they'll have a huge surplus that they'll stuff into us some other way.