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I suspect the enthusiam for biofuels has more to do with the fortunes which could be made than the potential for a solution. It may only end up being 1% of our fuel supply - but wouldn't you like to get your hands on the revenue from that one percent?
You could say the same about CTL - it may not sense from a global perspective, but a million barrels a day multiplied by $50 a barrel is nothing to sneeze at. Who will be the first CTL billionaire?
You could probably make a lot more money from building the energy systems to make biofuels into viable replacements instead of niche products with petroleum, but the visionaries behind these seem to be keeping quiet. I probably would too, in their position; the less attention you attract, the further you can get before the people whose interests would be threatened start to attack you.