There's no real reason to switch so long as we are using these fuels for anything else. Let air transport be the very last things changed over, we have a ton of much lower hanging fruit that we can work on first.
Another problem is getting an uninterrupted supply of H2 and CO to feed the process. None of the convenient sources for those are carbon neutral, and obtaining either in a carbon neutral way (i.e. renewable electricity powered electrolysis) adds significant additional inefficiencies.
> Synthetic diesel is its own energy storage medium. If the plant was powered at night by burning its own daytime products, and powered in the day by solar, it would still be carbon neutral.
Yes, but why would you power it at night with the syn diesel you created during the day? You'd end up with at best 25% of the syn diesel you started the night with, because the Fischer Tropsch process is only 50% efficient, and running a diesel generator is at best 50%.
I think we've reached a point where a large and growing portion of the population wants a level of amenities/services that can only be realistically provided in areas of sufficient population density.
Now, there could certainly be some shift that changes that, but I'm not sure what it would be.
As I said: remote work.
You are right we need "sufficient population density". I wouldn't want to live in the country side for long term. I want to access things that only cities can provide, but I only moved to London because of job opportunities. I would happy to live in a small city if I have access to the same jobs.
If remote work would be more widespread the countries would be more decentralized.