The only downside I see is the obvious one. You need a landing strip. Population density and local regulations mean you really don't have a flying car. You have a small airplane with 4 wheels. The range is much better than any helicopter though. But I wonder how far we could get with a hybrid gas drone. The energy density of batteries is still too poor for significant ranges. The only thing heli/quad copters can do now is fly for 30 minutes or less. Good for a Dubai taxi or vehicle in Singapore.
A petrol electric hybrid offers you lightweight engines, and because of the low weight, you can use as many motors as you want. The effectiveness of a rotor /propeller goes down with size, though that's probably something you can field with counter rotating rotors in a quad configuration. Similar to a petrol hybrid car it should have a longer range than a petrol-only vehicle. For Australia and America that will be vital for the project to be viable. Petrol electric, or better, diésel electric seems to me the only realistic option at this point. There's a plethora of other very nice projects (see the Guild of Icarus thread at the meta clubs section in metaphysical section), but they're all short range because they insist on being electric only.