One area of research I've been watching is supercapacitors/ultracapacitors. Supercapacitors are already in experimental use on
buses in China.. Australian researchers have created a
combination battery-ultracapacitor that is cheaper and more efficient in hybrid cars (in tests) than regular li-ion batteries.
Basically, if super/ultracapacitors work out, they will have the range of batteries but charge in seconds or minutes, not hours. Couple this with new, much lighter
carbon fiber car bodies that could exist in the next few years (the technology is there, but the will to change manufacturing processes is not) and we could have a fleet of electric cars with reasonable range and reasonable charging times.
As for high-mileage combustion engine cars, current diesel technology as deployed by Volkswagen is responsible for the mileage record for a passenger vehicle on one tank of gas:
1,527 miles (or 90 miles per imperial gallon). As this is a diesel, it can run just as well on biodiesel. Just think what a plug-in hybrid diesel could get for mileage around town.
As for the energy grid, there are proposals out there to make plug-in hybrids
a part of the solution, not the problem. The "smart garage" would allow the grid to pull electricity from car batteries that are docked for charging when needed, in addition to charging the batteries. This would require a completely upgraded smart energy grid, but we should be doing this anyway.
Electric cars are the future. They will keep getting better. Someday we will look back on the age of gasoline-powered cars and wonder what we were thinking.