It would depend upon how much extra you could charge for a ticket and how many more seats you could sell under each option, which is the factor you did not consider.
The true flaw in the proposal is that in our freewheeling tort law system, a single security breach resulting in the loss of an aircraft could essentially bankrupt the airline. This would lead the airline to screening/database requirements that would make the NKVD blush for shame. That in turn would make ground travel so appealing on routes up to 500 miles as to bankrupt the airline anyway.
Not necessarily, and even if it did so what? Think about the number of airlines that are currently operating in bankruptcy. If anything, the ability to avoid civil liability by filing for Chapter 11 bankruptcy is even more of an incentive to cut corners on security.