Thanks for all the quick feedback!
Jackal -- I noticed the sale was for travel after Jan 5th, and we were planning on being there between 12/25 and 1/1. I do agree about the winter driving bit -- while I've done it when I lived in Chicago, it was never 'fun'
vysean -- we were planning on visiting Chena Hot Springs as well. One question regarding gear: my wife and I have a pair of Muck Boots from our Antarctica trip. Should we plan on wearing those? They will definitely keep our feet warm and dry, but they're bulky to pack. Thanks for the Big Rays tip!
Finally, if we skipped Anchorage and spent all 6-7 days in Fairbanks, would we be bored out of our minds? Any compelling reason to spend couple of days in Anchorage before or after?