Do you have a link to the Dutch and U.S. studies concerning the increase in GHG emissions at greater than 5% wind penetration? That is most interesting and, unfortunately, makes some sense. The law of unintended consequences...
With regard to your points about diesel and related technologies, to steal a line from one of Abraham Lincoln's stories: You've got the facts right but the conclusions wrong.
You are absolutely right about the promise of many here-and-now technologies. You might even add that Detroit is doing great things with gasoline engine efficiency. It is not widely appreciated, but over the last twenty years, despite huge advances in electrochemical energy storage technology (e.g., the commercialization of rechargeable lithium-ion batteries), improvements in gasoline engine efficiency have largely kept pace, on a percentage basis, with improvements in the efficiency of batteries.
The here-and-now technologies also respond to market price signals and traditional government regulation. Little is necessary to encourage the migration of consumers to more efficient ICE vehicles other than to tighten CAFE standards and to sit back and watch the price of gasoline rise. As you correctly point out, the technology is already here; all consumers have to do is buy it.
But the here-and-now technologies also come with a serious limitation. In the event of a major disruption of petroleum supplies, a 60 mpg hybrid diesel Prius will be every bit as immobile as a Hummer. Moreover, the failure to diversify away from total reliance on petroleum-based motor fuels leaves the world geopolitical situation just as precarious as it is today, regardless of what percentage of total worldwide petroleum use the U.S. accounts for.
Vehicle electrification is not fully here-and-now. But it is a critical technology that the government must support, encourage and, yes, subsidize. Because the principal benefits it brings to consumers are in the form of something other than fuel cost savings, it cannot be promoted by price signals alone.
Electrification and greater petroleum-based fuel efficiency are not alternatives. They are strategies that must both be pursued and pursued aggressively.