We're getting off topic a bit, I think you missed my point which is many do not know the true costs of operation or choose to ignore the facts.
Based on my experience, $50/hour wet *direct* running cost is normal for an LSA.
By direct do you mean just fuel and the costs of the 50 hour inspections?
Because that's about all 50 bucks gets you. No insurance, no reserve to overhaul engine, no hangar etc etc. In other words the true costs are much higher.
My figures were based on private ownership/usage and for that 200 hours is probably a very generous figure.
Agree re the 500 hours for a flying school situation, but then there needs to other costs added to the equation in order for the school to make money.