Is stupid. It flies. As it has been explained a million times, it flies. The wheels go double the speed, and it rotates and takes off.
That being said...
In a purely theoretical world, I have figured out a way that it would be prevented from flying, but it disagrees with everyone who is claiming it won't fly, so you are still wrong on all levels. Assume the following...
The wheel bearings do generate some resistance when rolling forward. If the conveyor belt truly could increase speed not only exponentially but to an absurd top speed, it could continue counteracting the rotating resistance inherent in the wheel bearings until the airplane's thrust could not overcome the resistance in the wheel bearings. Also assumed but not possible in any case is that the wheels and tires would stay together long enough for this to happen.
As it has been described, a plane on a dry runway doesn't overcome it's brakes. The brakes WILL hold the plane in place at full throttle, which leads me to believe that skidding tires against the resistance is not likely. Assume that the brakes on would be full resistance possible, the plane won't roll.
It is a stretch, but depending on the theoretical limits of the argument, this is the only way where the answer could be wrong.
By my rough calculations, the treadmill would have to increase it's speed nearly exponentially through something in the neighborhood of 1000mph, a speed roughly four times what the tires would take before becoming history.
So if the following impossible situations were possible...
1) the conveyor belt could accelerate from 0-600 mph in a couple of seconds
2) the wheel bearings could stay together long enough to provide enough resistance to counter the thrust of the motor
3) the tires could stay together for the same period
4) the pilot would be good enough to keep the plane going straight through all of this (you need to assume that all of the wheel assemblies won't offer the same exact resistance, and on an exponential curve, that will make big heading changes
Then the plane wouldn't be able to leave the ground.
Any takers?