They don’t even need batteries to run, electrified trains have existed for over a hundred years at this point and they have the benefit of also not needing synthetic rubber for tyres that wears and sprays non-degradable parts all over and to boot don’t need as many drivers, saving you much of the money that computer controlled vehicles would.
Think money. If you're invested in some product that is sitting around for two weeks, that's lost money.
Luckily EVs and high efficiency internal combustion vehicles are driving down the demand for ethanol in the US and obviating the need to consider biofuels as a petroleum alternative.
If you get the source right, biofuels are great. But as you say, get it wrong (e.g. the EU policy of encouraging bioethanol) and it is disastrous for biodiversity.
I'm surprised we are not doing more with sewage, but I suspect that is to do with the difficulty of processing such a mixed substance, and the amount of infrastructure that would have to be changed.
That said, I own a "biodiesel" vehicle and hope to find the time and opportunity to actually make my own fuel.
The demand spikes are what is going to be tricky, but will likely be solved with onsite batteries to smooth demand from the utility (VW buys batteries from Tesla to do this at US charging stations they’re required to install as part of their Dieselgate settlement).
It’s possible Tesla’s Semi manufacturing kicks off shortly with Gigafactory 3 coming online in China this month, reducing reliance on Gigafactory 1 for cell and pack production for China-bound Model 3s.