That's not what I'm saying at all. Key West is a small (but popular) airport. It's also the furthest and requires the most stops. If you can fly to EYW for less than $250, you can also fly to Tampa, Miami and Orlando for less than $250. You have to work at it to make airfare cost $1300.
This is where driving still saves money if you live in the middle of no-where. For the airport 1hr away from me, my trip to Miami in Dec would cost ~$500 a person round trip, so for 3 going, that's $1500, and that's just the front Kyak page. Adding checked bags for everyone would take us to $1,750, and tax or whatever is likely to put that to $2,000. Plus a rental car needed down there, which I guess for ~2 weeks would be about $700? Or I can drive the ~2770 miles for a gas cost of around $520. Add a hotel room on the way down and back up for $150 each or so. $820 is a savings over $~2700 in travel costs.
I could drive 5 hours to EWR and get that price down to maybe $250 per person round trip, plus $50 checked bag per person, plus taxes, so likely $350 per person, or $1050 for flights, so I would save about $1,000 that way, but now I also need to add in the gas to and from EWR - about $80.I still need the same rental car for $700. So here I'm at $1,830 for travel vs $820 driving. I could even add a second hotel night each way for an additional $300 and still be well under flying.
The tricky part is amortizing the cost of the vehicle you own, but I tend to not allocate that cost to traveling as I need a vehicle "anyway", though my recent purchase was targeted to this travel though I'm not sure how much of it was per-se. I'd say looking at it, probably $20,000 could be allocated towards the travel, but it's also more time based than distance / trip based. Taking this over the 5 years of a car loan split with the expected life of the vehicle gives me around $4,000 a year considering loan interest right now. Split across the 4 driving trips planned this year puts me at $1,000 a trip in car overhead so I'm still beating flying locally, and maybe on par with driving to EWR, but that's also a long enough trip that I could make the case that I need the car for that option also. It's one thing to bum a ride 45 minutes and ~80 miles, and another to go ~5 hrs and 208 miles.
For me, I think the tip over point is when you get to 3 nights in hotels on the travel part - then the travel starts to become kind of a main point of the trip and I'm willing to pay the premium for flying. That said, I am considering planning out a cross country trip with stays in Timeshares like others have done on TUG, but in that case, the driving across the country is part of the trip in a way that just going to California *isn't*.