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Requirements for widespread VTOL use  updated 05/07/02

5+ passengers Distribute pilot cost over enough passengers. 
The pilot is the principal cost of an air taxi
>200 mph Vehicle must be significantly faster than auto to change travel behaviors.  It also can not be significantly slower than a jet aircraft.
All weather Passengers are reluctant to go travel out in a form of transportation if they are uncertain about the return trip.
Safe and reliable Passengers are reluctant to use a form of transportation which is not as safe as auto or aircraft.
Highly manuverable Turbulent conditions near buildings (vertiports) , micro bursts, etc., must be handled safely, and with passenger comfort.
VTOL Takeoff and land vertically = not need airport or aborted takeoff region for a helicopter
Low internal noise & vibration Passengers are so discomforted by the typical helicopter noise and vibration they they avoid using helicopters (in addition to the cost).

Desirable features for widespread VTOL use

Low fuel usage Fuel usage is the second highest cost for an air taxi
Low pollution Desired by society
Low external noise Desired by neighbors and military (they call it acoustically stealthy)
No external blades Having no external blades to hit trees, wires, buildings, etc. increases the number of takeoff and landing locations - which is especially important for emergency use and emergency landings.
Hover 20% of existing helicopter usage requires hovering
Pressurized cabin Desired for the high altitude required for speeds greater than about 200 mph.