Electric cars could be useful for a lot of people in Australia (i know a lot of people will say "oh, but what if i wanted to go on holidays", however, if everyone took a good honest look at where they actually took their car, i think a very large portion would find that they'd never go more than 150km from home)
The main problem with internal combustion engines is that you really can't get them as effecient as a powerplant. So yes, they might burn a lot of coal, but they also put out a Gigawatt. Odds are they put out less CO2 per Watt than your modern turbo diesel does. And then, even if their tech doesn't improve, and we keep burning coal, they'll become viable for a portion of the country, because it's probably the best form of energy storage we have apart from oil, and oil doesn't seem like its going to stick around for that much longer.