Edit: more like 6 million people fly between LA and SF annually. I was thinking of the Amtrak Northeast Corridor ridership, which is about 12 million annually.
If it was that cheap and fast I'd think nothing at all about travelling between the cities a couple times a month. Not daily, but far more frequently than I do now. I wouldn't be the only one.
Beyond that, the paper also claims a total annual ridership of 7.4 million people, so approximately the same ridership as currently served by air travel. So, other than acting as a jobs program, in what way will this alter the economic landscape of California?
Given how fuel dominates the cost of operating an airline, I'd say that something that is net neutral in terms of energy usage should be able to compare quite favorably in terms of marginal operating cost. I think that that $100 each way figure is very conservative in terms of what it would cost to transport a person.
I'd say the ridership assumptions are very conservative, the experience described is so much better than flying that I would guess that ridership will increase quite a lot. I would visit LA many times as frequently as I do now. It should also cannibalize car traffic quite a lot.
As far as economy goes, this would make intercity business much easier, decrease congestion of the freeways, save many man-years of time that would be otherwise spent in airports or driving, and it would be generally more efficient.
The alternatives are lighter-than-air craft, where speeds of up to 130 MPH are possible in current designs, it's unlikely that we'll do much better than this. These have _vastly_ lower energy requirements, and could be feasibly powered by solar cells plus either batteries or a small hydrogen fuel reserve capacity, or perhaps wholly by hydrogen-fueled engines, as the volumetric constraints of an airship are much lower than that of a HTA craft.
Or you could offer high-speed ground travel. Conventional high-speed rail is one option, the Hyperloop would seem to be another. I suspect that conventional HSR could achieve higher throughput -- 840 passengers/hour would be about 16 x 60-passenger rail cars. HSR offers lower speeds and longer transit times (2h 38m SF-LA projected), but might also serve more end-points for a roughly equivalent door-to-door trip time, though I suspect that's pushing feasibility. Musk discusses 2 minute to 30 second headways between pods, which is ... pretty aggressive (that still puts between 5 and 24 miles between pods, but you're moving at 700 mph top speed).
Either way, planes are going to be excluded by and by.
For me, that's one of the most significant things about the whole project. I'm no sandal-wearing Greenpeace-type, but I am convinced that if we're to continue trying to achieve developed-world quality of life for everyone on the planet then we need to start getting much smarter and more efficient with our energy usage. One way is 'stop living the way we do', the other way is this (and other advances like it).