I freely admit to having a bit of an obsession around these things, comes from being a nerd who grew up skiing. What they're great at in terms of urban transport is getting a lot of people over a relatively short distance in a straight line, particularly over water or difficult terrain. They can't really turn corners except at stations, and stations are the really expensive part. And if they're going past residential buildings in front of people's windows, that can be an issue.
I don't know where they're getting $100M from; your basic monocable gondola has 8-10-person cabins and runs about a tenth that, and is probably entirely adequate for this purpose. Though if they're talking 40-person cabins, that sounds like what's called a 3S (a German abbreviation for "3 ropes"), with two track ropes in each direction and one haul rope, and 40-50-person cabins. Those are pretty spendy, maybe in the 20-30mil range, but have huge capacity and can span long distances between towers. (The only one of these in North America spans a valley between two mountain peaks, at Whistler/Blackcomb in BC.)
An aerial tramway, with two big cabins that shuttle back and forth, like in Portland and on Roosevelt Island, is really expensive and has much less capacity; I can't see why anyone would consider one for this application.