Well, I honestly hope this does at least break the ice on this kind of service. Yeah, there will still be demand for the coast-to-coast service, but that's apples to oranges for this kind of service. These guys are concentrating on a regional service to smaller airports. I'm guessing their target demographic are travelling business people responsible for a region (like a regional supervisor of a shipping company for example). Not only does this generate revenue (which generates jobs) for the aviation industry, it makes said regional supervisor more productive since he can potentially visit more than one site a day. His other option is to drive or spend most of the day sitting in a hub airport only to go somewhere that was 200 miles from his point of departure.
I think rental car companies would see a drop in revenue from this kind of service before the airlines would. If the service catches on, it might even be possible for some airlines to stop service to some of the smaller cities if a VLJ company can continue the service, thus increasing the airlines' profitability (or bringing it closer to breaking even).
Just my $.02 on the management point of view. Now let's see if the pilots get paid any more than CFIs.....