Benzene really only shows up in traces if you're trying to get absolute ethanol (100%). You can distill up to 95% ethanol (the EtOH-water azeotrope) without introducing anything else.

Right, the EtOH/azeotrope is the normal domestic (industrial grade) product available where I am (Australia), it's available in all supermarkets, etc. That said, it often has impurities that ought not be present (see my other post).

Here, 'absolute ethanol' is typically 99%. No doubt H2O is a significant part of that last 1% but going on my experience with 95% EtOH I wouldn't be a bit surprised about it being benzene and it's likely there's other undesirable stuff as well.

BTW, over the years I've bought a lot of industrial grade 'absolute ethanol' which I use in woodworking as a solvent for shellac. 95% EtOH is unsatisfactory as the water in it often causes the shellac to turn a cloudy/milky colour.

I have to buy the 99% grade in 20-litre plastic containers as usually that's the smallest amount that's supplied. Moreover, it's much more expensive, at least double the price and on par with that of isopropanol.

Given its price and comparative rarity I doubt whether its consumption would be a signifiant problem. Anecdotally, the stuff I buy seems to have significantly more denatonium than the normal EtOH, quite some time after using it I've momentarily held my (dry) hand on my face near my mouth and the denatonium is almost overpowering. That's not the case with normal domestic EtOH (in the same situation denatonium is present but nowhere near as objectionable).

Absolute ethanol in the US is a chemical product and does not have denatonium in it. It isn’t much used, but you will sometimes see it in chemistry labs for IR spectroscopy. It’s at least 99%, the whole point of it is having a solvent that wipes out that huge water absorption band on IR so you can see the rest.