I think you're off to a good start, but not quite working as expected yet. When I load the file in GE and click play, the last frame where it stops has no aircraft. If I click the + button to minimize the interval, and then click the arrow to go back one frame, they're all there. Additionally, I tried setting up a Network Link in GE to your KMZ and a 2-minute interval. After some time, 2-5 minutes, the player widget sometimes shows it can advance, other times it remains stuck at whatever the last frame was when I first loaded it, so it cannot advance into the new data, and in either case it doesn't advance automatically.
While I realize the data is on a delay, I'd like it to update automatically and reposition all the aircraft to the latest position (delayed) that you can publish, along with tracks for the last hour (more than that and it becomes a crazy spider web).
MarineTraffic.com does what I describe very well, so I'm sure it's possible.
To take it a step further, GE may provide information in the request to you about the current view, by which you could filter the returned data for a smaller resultset, both by the view area and the altitude (if camera is above some height, filter out low-flying aircraft, for example). Also, if you return the resultset as a Network Link folder, you can specify the refresh time at your end to control the load a bit.
Another suggestion: Instead of a single Network Link resultset folder, return a batch of folders, perhaps breaking up the results by airline, or by airport (origin/destination). You could even produce a nested set of folders, so the users can turn off parts of the results, which would serve to both allow the user to customize what they see, as well as lower the load on your end since deactivated folders don't auto-refresh. Below are two examples you could offer separately for users to choose from. In either case, results could be limited to the region in view and/or altitude:
Example KMZ:
[X] Flightwise Aircraft By Airport
\....[ ] KORD
\....[ ] KRSW
\....[X] KIND
_ \....[X] SWA9999
Example KMZ:
[X] Flightwise Aircraft By Airline
\....[ ] UAL
\....[ ] AAL
\....[X] SWA
_ \....[X] SWA9999
MrG