I think this could be viable IF you had access to a lot of unsellable wood that you could use to heat the kiln with.
Being able to advertise "kiln dried" will quickly separate your wood from all the other local sellers. Even if you don't charge a premium, just a regular "fair" price, the quality of what you could deliver would result in a lot of repeat sales and word of mouth advertising new customers. And as pointed out, it helps sterilize the wood, kills the bugs, etc.
Kiln drying also lets you sell "on demand" custom wood. Someone wants a certain custom size, you can cover it, and deliver it seasoned. Keep your wood stacked in log form, and then cut and split to specifications and deliver within a few days..hot fresh from the oven.
And for my loot, if you could add in a commercial greenhouse to the operation, and pipe the hot moist air into it from the kiln..see how you can get paid more for the same work? A greenhouse with a few different crops, all hydroponic (hi yield per square foot), fresh local ripe veggies for sale, in the winter off season, along with real good seasoned wood, all based on "junk wood" no one wants for the energy source..it could work.