If you want to distill fuel alcohol, you do need a permit. Without a permit, it's illegal.

I mentioned fire in relation to a "problem" with home distilling, not as a legal issue, although fire codes related to distilling are quite extensive and restrictive.

I also mentioned the revenue issue in several other comments.

The so-called "moral" issue is generally only relevant to consumption, not distilling, and only at the state level or below, where some states have "dry" counties and other restrictions on access.