Not a subtle distinction as in the US, natural gas is essentially all domestic (and is starting to be exported as well). The decision to grow ethanol is geopolitical at least as much as it has anything to do about the environment (remember, serious ethanol mandates started under Bush II) as part of the effort for energy independence, so trading natural gas for gasoline through ethanol (even if we wrongly assume it's as bad as 1:1) is still desirable.
Also, gasoline (C8H18) has a carbon to hydrogen ratio of approximately 0.44, compared to 0.25 for natural gas (CH4) (and natural gas has a higher specific energy), so from a carbon emissions perspective is still superior.
Additionally, natural gas in not "just a natural cracking product of petroleum." There are other significant geological sources of natural gas, and it is produced through decay of just about any organic matter.
Maybe if we were all aware of this, we'd be setting up clean hydrogen to be converted into ammonia instead of just burning it in hydrogen cars.