Yes, you point out the facts of this; namely that typical strong alcohol at 70 proof is 35% ethanol. The balance is mostly water. This product is about that ratio of ethanol to some sorbent material that appears to go into solution if you add water.
If the legislature of those states who are alarmed just did a little homework, they would realize that this is much ado about nothing.
Did you ever consider that they already know that? These are people who jumped through so many hoops to get where they are that they just enjoy being in control, flexing their muscles, and feeling secure in their positions by using them to real effect. Frivolous shit like this is the low-hanging fruit for control freaks. The very fact that it doesn't involve anything important means that the degree of serious, committed opposition will be minimal.
The important part for this mentality: if it doesn't work, nothing is really lost and you can wait a bit then keep trying until it sticks; if or when it does work, it establishes a "useful" precedent, giving an appearance of legitimacy to the idea that yes, the state can regulate this thing, too.
This is how sociopaths think. It's about winning and winning is about strategy. Most of that comes from a good knowledge of history, what others have tried beore, which things worked and which backfired, and what one is willing to risk. The campaign promises and speeches are just part of playing the game. The problem, the disconnect, is that average people don't think this way. They keep misinterpreting the actions they're observing.
As long as that keeps happening, things are unlikely to change. It's really difficult to solve a problem you haven't even defined.