This thread provides a good discussion of the meanings of la-la land and La-La Land, and the definitions provided by the Merriam-Webster dictionary sums it up:
1) la-la land (not capitalized): a euphoric, dreamlike mental state detached from the harsher realities of life.
"When you spend time around [him] you are struck by someone who isn't living in la-la land and isn't a pushover."
— Todd Balf
2) La-La Land (capitalized): used as a nickname for Los Angeles, California. "Like most devoted New Yorkers who find themselves in La-La Land, the author goes through at least half of the five stages of grief."
— Alexandra Jacobs
Selima's original post capitalizes the term and refers to travel between Portland (Oregon, probably) and Los Angeles, so it's pretty clearly a reference to Los Angeles. So ##1 - 5 got it right.