What are the long-term environmental issues with Li-Ion batteries? Eventually they will need to be decommissioned... What happens when the battery can't hold a charge anymore? Can the parts be recycled? Are they toxic? What will people do with their old dead Li-Ion batteries?

Lithium is non-toxic and is the 33rd most abundant element on earth. Surprised? I was. I would be more than surprised if there's not a complete recycle program for every car. Anyway, here's an interesting read on lithium and lithium-ion:

http://en.wikipedia.org/wiki/Lithium
http://en.wikipedia.org/wiki/Lithium_ion_battery

Tesla on their battery recycling.
http://www.teslamotors.com/blog4/?p=66

I suspect Chevy will have to step up to the plate on battery recycling, and hopefully before the Volt is in showrooms.

Here's am interesting video from Lithium Exploration Group about an economic and efficient desalination technology they're employing:

http://www.youtube.com/watch?v=KNABCcA46Ao&feature=share

It's nice to see a company that is both up-front and compassionate about their bottom line.