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Based on the reading I've been doing today, this hydrogen from ethanol thing is all good. I have no idea why manufacturers don't offer this as an option. It seems to be a good compliment to AFM and VVT. I'm guessing there is some concern that people will forget to add distilled water to the system, or add tap water. There are significant safety concerns when the system is on without water. There would have to be all kinds of safety controls that shut the system off if there was no water, etc. I can't imagine this hasn't been considered by the big 3.
It makes sense that Ethanol is a better solution for them since the engine requires only minor mods.
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