Whiskey is not alone in this. A good chunk of American vodka is apparently actually made from ethanol purchased from Archer Daniels Midland (ADM), the same company that distills ethanol for use as a motor fuel.
Seems fine with me; if the distillation is done well, then ethanol is ethanol.
The important part of vodka is what water they are adding to that ethanol. It's not "just water" in that case, though it may very well be tap water (which is fine if they have good tap water).
Production practice of Vodka matters less, because the point of vodka is "a flavorless spirit". If you're dealing with flavor vodka, your no longer dealing with a craft/artisan spirit anyway.
I've been looking and hoping someone takes up this mantle. A "vodka" in a plastic or metla motor oil-like bottle, dressed up to look like a fuel additive and labeled NGS or something vaguely technical. Made straight from ADM (or an equivalent) farm waste and distilled an extra time or two to remove the nastier volatiles.
Priced cheap, maybe at 80 and 160 proof options (normal and hi-test). Filtered tap water added at the bottling plant, and proud of it!
http://www.bbc.com/news/magazine-18360315