Agreed - you probably won't reach anywhere near $1K per month unless you are in the 300k hits per day territory, which is pretty much impossible for most bloggers. Just extrapolating my own blog figures from adsense - I've made maybe $50 in adsense so far, from half a million views (over the past several months). While blogging is technically easy to monetize, it is very difficult to make decent money from it.

If you are making only 1k per month from 300k hits per day that means you are either not presenting the adsense in the correct way or you are blogging about a subject that does not have any competition for the niche that advertisers are willing to pay for clicks other than a few pennies. As an example I have a site that makes around $400.00 per month that only get 150-300 hits per day.

With proper research and the way you setup the blog you can potentially create a great income stream even without hitting huge amounts of traffic. It is all in what you blog about and the amount of people who may be interested.