If this fuel costs $100/gallon, it's cheaper and thus more sustainable to aggressively subsidize EVs before synthesising fuel. If, on the other hand, it costs $6/gallon, funding its production with a tax on fossil fuels makes sense.
Rejecting reality "to save humanity" is a false economy.
No, this is very wrong. You always need to be asking this, because you want to be using the most effective approach towards your goals, and price signals are irreplaceable tool to determine the effectiveness.