We've been looking at things all wrong. This is a long article but it points out that it can be done with current technology and be economically feasable. The man inverted the paradigm - you don't sell electric cars with batteries. You sell a recharging/battery swap service that discounts/gives away the cars so you can use them. This is like giving away razors and printers so you can profit on blade and ink refills.
It's also an amazing example of economy of scale because there has to be a network in place or it won't work.
Driven: Shai Agassi's Audacious Plan to Put Electric Cars on the Road And his company:
Better Place I am such a geek. This actually has me excited.
Edit: Also incredibly true quote from Shimon Peres:
I thought that the greatest problem of our time was oil. Oil on one hand is polluting the land, and on the other hand it's financing terror.