There are a large number of past and current threads on this subject.
To summarize :
- yes you can drive but it is not very scenic, takes about ten hours to pamukkale and an additional three hours to Selcuk.
- Pamukkale is on the way, in fact you probably will want to stay a night there.
- It is an easy drive in terms of road quality signposts and traffic. Can be done by yourself with no problem.
- Flying to Izmir from kayseri will actually save you time and money. You can rent a car at Izmir airport.
- Ephesus is the name of the ancient city so there is no lodging there. The closest town is Selcuk, less than two miles away, which has good accommodation. Check Nazhan (the new larger rooms added this year) and Bella hotels.
Edited: 07 February 2012, 19:56