I am sorry to confirm that Phillip Bates is not back at Iowa State University.
I'll trust this based on previous posts on the money by JCloned2.
Now, back to the airplane. I think Mythbuster's finding were at fault because they did it with small airplanes. I think if a treadmill were big enough to put a small single engine plane on it and try to take off, it wouldn't get enough lift for it to work since it wouldn't be moving anywhere to build up momentum.
If it did work, why wouldn't an airport build a giant treadmill and save the money on a runway? Landing might be tricky, but that's another issue for another off-topic thread for the next rumor thread.