The problem is the Bain Capitals and Oaktree Capital Managements of the world are not in love with radio. They are not broadcasters. All they care about are balance sheets and quarterly numbers. I am not discounting those but that's not all there is to any business.
And this isn't about people who work in radio. It's about the people who don't listen any more, or listen a lot less than they did. It's also about all the advertisers who don't buy radio any more, or who give it a much smaller piece of their ad budgets than they did.
And all the bean counters can think of is ways to cut costs, until they have milked radio dry and bail out.
And those stations you describe with local owners, local people and local coverage: Damn few. And getting fewer all the time. Good money is not as good as it was. You exalt local and in the same breath exalt computer in a closet, turnkey sports networks which eliminate local. And are basically throw-away formats for AM stations trying to stay afloat. And right now the market is over-saturated with these canned sports talk networks - ESPN, CBS, Fox and way down there someplace, now NBC. NBC is pretty much locked out of CBS stations and Clear Channel stations (Fox). So, they pick up a few weak sticks that do nothing but add interference to the AM band. Heck, even the NBC Sports cable network (where available) is out of the running. NBC Sports Radio is pure hubris; Comcast thinks it's invincible.