It's really not that complicated. Alcohol has a lower energy content than gasoline so it is practically inevitable that you will get lower mileage with a gas/alcohol mix. The point of mixing in alcohol, however is NOT to increase mileage. Instead, it does several things...
1. Increase octane without using MTBE
2. Reduce the amount of gasoline we are using
3. Reduce emissions
4. Replace some of our gasoline usage with a fuel that comes from renewable resources (this, obviously, is directly related to #2 above)
When the EPA says it will save petroleum, they mean exactly that. It doesn't mean that you will save money, or that you will get better mileage, or anything else other than just that it will save petroleum. You may have more TOTAL fluid flowing through your engine, but some of it will be alcohol instead of gas, so you will save petroleum.