I disagree with a few of these statements.
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Its harder I believe to make biodiesel than ethanol as more land in needed for oil crops.
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I believe its easier to esterify oil than it would to make a reflux still and distill ethanol.
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Currently, there are waste foods being dump that could be fermented into ethanol, just like waste oil from fish and chip shops.
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True but again its easier to esterify than distil.
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A large percentage of the population cant get waste oil to make biodiesel, so what other options are there?
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Says who!! Thankfully however this isn't true. There is a fish and chips shop "round the corner" from almost anywhere, where people can collect it from. There is nothing stopping from asking or collecting.
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Ethanol I believe is the most sustainable and also be used in a fuel cell which will increase its efficiency to 80% compared to an IC engine of 20 - 25%.
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A petrol engine has a thermal efficiency of around 25%. Diesels are closer to 40% or greater efficiency (with a theoretical efficiency of up to 75%.) Source: High performance Diesel Builders Guide: Joe Pettitt 2007
With current infrastructure being so established, its going to be tough to convince the big powers to change. Better I believe to stay small and just plod along.