People pay more than that for domestic first class, which doesn’t even have lay-flat seats. $2,500 or even $5k for a New York <> San Francisco 2-hour flight would absolutely sell.
A number of US carriers offer lay-flat seats for at least some of their coast-to-coast domestic flights. UA has over a half dozen Dreamliners flying back and forth daily, all with Polaris cabins. I know AA and Delta have routes with them, too. I agree, a two-hour flight time would be better!