Ok folks...I went to allegiant air and "pretended" to book a flight just to see how good of a deal this was.
Well first off, you know that they didn't have any seats avail at the $9.99 rate. The next best deal was $49.99. So, ok...that's not too bad so I proceeded.
I was charged for picking my seat (however I didn't see any way to skip this feature online), charged for the actual seat, prices ranges from $10.99-$14.99, one bag was $40 per person and then add the other misc taxes and fees that they didn't even tell me what they were for.
I picked the cheapest options avail and tried to choose alternative dates around when my next vacation in Nov is planned. The total price for my family of 3 to fly was around $550.
Granted, this is a little cheaper then Alaska Airlines (our preferred airlines) but much less convienent. Alaska occasionally has some great deals and it usually costs my family around $750, plus I'm not earning mileage.
So IMO, while it sounds too good to be true, I think it may be.

Bummer too! I was really hoping to score some good airfare for our next trip!!