Not necessarily. When the idea of DAB was proposed, the idea was to have multiple 14 channel transmitters in the larger cities... enough channels to accommodate every existing station. In the case of the LA market, they would need to make room for the 87 different stations licensed to the metro.
And therein lies the rub: all the marginal signal FMs, the directional and daytime AMs, would suddenly be at parity with the "big boys". The $400 million Mt Wilson FM would be on a level playing field with the daytimer in Pomona that went for a coupla' million some years back. Not only did the broadcasters who had big investments not like this, the shareholders... particularly the pension and mutual funds... let it be known that this would be disruptive to a whole segment of the economy.
So finding out what listeners want and delivering it is bad?
(Focus groups are about the least used research tool in radio, anyway)
I was the programmer of 5 of the original XM channels, and at no time did I hear anything about "thousands of channels". Each of the two services which won pieces of spectrum originally contemplated about 100 channels... and reduction of quality has squeezed about double that in now. That is as far as the technology can go and that's the way it was designed nearly 20 years ago.
The real problem with DAB today is that the window for single use devices such as DAB receivers is closed. Users want all their entertainment to be channeled through one device, usually a smartphone or tablet. Nobody wants a "radio" anymore and that is why you will find that a typical Radio Shack has no radios save those huge clunky crankable emergency radios.
DAB is a form of OTA radio. Consumers want nothing to do with that.
It is a good thing that there is an expansion mode beyond just 14 stations in a metro area. But isn't it in mono? Or if it has a stereo mode does that reduce the channels to 7? It just seems that the system is better suited to countries with state-run radio networks than it is to the free market system in the US. Of course, I would love it if the little family owned AM oldies station in Huntsville had parity with the big broadcasters in this area.
I seriously doubt the focus group method is valid. The person selecting the study subjects has a built in bias. Not scientific - unless the selection is completely random and there is a control group somewhere.
I remember the early technical articles on satellite and it definitely had thousands of channels. I think it was the radio astronomers and military that kept eating away at the number of channels until it was just a couple of hundred split between two competing companies. Even years before the system was deployed - it was depressing to think it would be more of the same.
Radio Shack's long term problem with selling radios is their tendency to cost reduce. They took good ideas from people like GE, and cost reduced to such a degree the performance was terrible:
http://earmark.net/gesr/12-603.htm. Otherwise, they could have had a niche like C Crane does. I no longer even go, most outlets don't sell parts any more, and those that do have a small selection. I hate going 35 miles to Frys for parts, but they have them. If I can wait, there is Digikey and Mouser. And if I want a radio, I go on eBay or to C Crane. I sure don't go to Walmart or even Best Buy for radios because everything there is a minor variation of this junk:
http://earmark.net/gesr/Current_Radio_Design.htm
Not that there is a that much over the air anyway. Since the demise of KONO 860, I am now down to two AM frequencies of interest, one in Huntsville, one in Madisonville. Both require really good radios in a quiet environment to hear, so extreme DX radios still come into play. That or strangely enough HD radio, which is so unpopular stations have nothing to lose putting interesting formats on the air like real Christian rock, smooth jazz, indie rock, 80's album rock, eclectic, and oldies. Should H FM every catch on with the public, I am afraid such creative and diverse formats will disappear in favor of the same garbage on regular channels.
I still think it is content, not delivery methods, that is killing radio. Most people don't care about delivery method. Just the content (music). The present situation on TV / cable / dish / netflicks / hulu, etc. all indicate people are willing to accept any delivery method that provides the content they want. So it is with music.