The analysis in the OP has one HUGE flaw that no one has pointed out. You don't simply get the luxury of comparing the cost of the solar cell to the cost of mined coal. (*edit, actually it has been pointed out; I had this tab open for a while.) You need to include the cost of building that coal fired plant from the ground up.
Another flaw: since you mentioned that it depends on where you live (and not where the plant is located), I'm going to assume you're talking about solar cells at a residence. Unless you go completely off grid, there's no need for storage in batteries. And, you're certainly not going to have 40% losses - that's an exaggeration you're pulling out of your ass to make your argument. Let's take a 4000 watt installation, for example. You're claiming that it's going to lose 1600 watts? That energy loss would go to heat. That's a lot of lost heat in the house. A 1600 watt heater running during all the daylight hours, in the summer? I'm very skeptical that that much heat is generated.
Coal costs closer to 2 cents to generate a kw-hr. But, that factor does not include the external costs that are born by society. Including these costs (deaths of miners, destruction of environment (including natural resources with a value, such as timber), etc.), some analysts put the price of coal well over 10 cents per kw-hr. Here's a link that describes many of those costs:
http://www.theatlantic.com/magazine/archive/1993/12/the-true-cost-of-coal/4566/ (just a random link; I have no motivation for picking a particular source.)
Nonetheless, a dollar is going to buy you 50 kw-hr (or 100kw-hr, again, with your grossly rounded in your favor statistic.) That's 50000 watt hours. Since you're allowing for 100 square feet, and even accepting your worst case scenario of 2 watts per square foot, that's still 200 watts of generation. 50,000 watt hours divided by 200 watts is 250 hours. Or in other words, "these things are so bad... whole year", you're full of shit.
Now, other flaws in your analysis - you're comparing the consumer cost of energy via solar to simply the cost of the coal that's burned. You either have shit for brains, else are being incredibly dishonest. The average cost to the consumer is around 10 cents per kilowatt hour. THAT is the figure that you have to compare the costs of home generated solar power to. And, in that case, your $1 is only going to buy you 10kw-hrs, not 100.
A somewhat more realistic analysis is this, and I'll skew the numbers in your favor. $1 per watt for 10 watts per sq foot panels ($10 per sq ft.); But, after losses, let's say you only get 4 watts for that $10. $10 would buy you 100 kw-hrs from the power company. How long until you recoup your investment? So, 100,000 watt-hours, generating at a rate of 4 watt-hours per hour. 25000 hours to break even. At only 8 hours a day, that's 3125 days to break even; about 8 1/2 years.
Now, a lot of people wouldn't want to have that money tied up for 8 1/2 years before they break even. But, remember, after 8 1/2 years, your energy is close to free, while there's every reason in the world to expect that the cost of energy on the market is going to increase. (Hell, coal skyrocketed in price a couple of years ago.) People spend that kind of cash (or more) on vehicles for a 6 year loan; 8 1/2 years isn't really that long.