Drone,
Your argument is valid if you take Hitech's observation that the instant an external force is applied to the aircraft, the wheel speed would instantaneously jump from zero to infinity, and that the all energy used to further accelerate the aircraft would simply be pumped into the theoretical infinite-speed treadmill.
The problem with that solution is that the treadmill and wheels would have to have zero mass, zero inertia, and infinite strength to be able to instantly accelerate like that. But if they have zero mass and inertia, then they would not actually absorb the energy as you say they should. In that case, they would simply not factor into the force equations and the plane would still be able to move forward through the reference plane in which the engine thrust is being applied (through the air mass).
Once the wheel speed goes to infinity, the relative motion of the aircraft through the air is not significantly in the equation unless the mass and inertia of the wheels is either zero or so close to zero as to still be impossible in practice.
This is why all theoretical faster than light drives use some sort of field to either reduce the effective mass of the ship to zero, or create some sort of bubble around the ship so that the ship is surrounded by sub-light velocity space while the bubble, which is effectively massless, moves through the rest of the universe. Star Trek uses the second trick, creating a "sub-space" field around the ship so the ship never gets close to the speed of light. You are postulating the first trick, where your wheels and treadmill are capable of moving at an infinite speed. To be able to do so, they would need to have zero mass or infinite strength (or possibly a diameter of zero... hmmm)