And that is what is propelling HD into the largest cities in Mexico, for example.
I know this is getting a wee bit off topic, but I figure you will know the answer better than anyone else: is channel spacing on FM in Mexico the same as in the US? It seems like the success of FM HD depends a lot of how densely packed the FM dial is. It seems in my experience that the Zone II stations tend to perform better at the fringes due to less densely packed adjacent channels. Whereas in New England and the upper Midwest in Zone I things cut out a lot quicker.
But satellite costs consumers cash money. And it is only really justifiable for large market residents if local OTA media does not have a similar format to what each consumer is seeking. In smaller markets, satellite may offer more mass appeal formats and compare favorably with local OTA radio, but that's not the bulk of US population.
For me, satellite's appeal was the niche formats. Having two or three dance channels, the decades channels, some of the other long-since-gone niche channels. But then they ditched most of those beloved channels and re-jiggered the decades channels and gutted them after the merger. I got tired of paying for talk & music that might disappear with little or no advance warning. I can get that for free on terrestrial radio. (It also helped that I'd moved to a very isolated rural town that had its own oldies and FM stations, so the need for satellite was very much negated.)
OK, perhaps 99 times better, and yes FM HD is better sounding than satellite but what about all those dropouts? Regular FM sounds better also and if I had the choices of Satellite radio with analog FM I probably wouldn't have subscribed but as we all know FM has 500 classic rock stations all playing the same krap,..... oh yeah 500 top 40 stations all playing the same but much worse krap. NPR saves FM for me and one certain classic rock station (WZLX Boston) which plays a good variety, otherwise Satellite has a huge variety and will come in from coast to coast with very few dropouts. I used to drive from Worc Ma to Burlington VT for a total of about 220 miles with only a few dropouts, try that in your HD equipped car. I bought a lifetime subscription about 6 or 7 years ago so I'm all set as long as I own this car which I plan on keeping, and if anyone here is trying to say that Satellite drops out as often as HD they have to have a problem with their Satellite receiver or antenna. I know the areas mine drops out around here and they are far and few between.
Back when I had satellite, I also traveled more extensively, but I found plenty of places where satellite did not work at all, or worked too poorly to be of any use. If you are mostly dropout free, it's likely due to a network of ground repeaters. I recall in particular a 20 or 30 minute stretch of I-81 in Virginia where my radio was just completely dead due to a steep mountain ridge right up against the highway. And pretty much all of old town Savannah in Georgia, due to the mossy trees hanging over the roads. Ditto downtown Mobile and Government street, for the same reason. And downtown Vicksburg by the river, where the city is up a hill, making the buildings seem that much taller. I even remember XM cutting out extensively in New York City, their own headquarters at the time. It stayed off the whole time I was crossing the GWB, which seemed odd since it was out in the open. And things may be different now, but I traveled through Ontario and Quebec pre-Canadian XM launch and it was totally useless there as well, especially in the cities.
Of course I've always said that some HD markets are better than others. Most of the FMs in my small market (Mobile/Pensacola) are now running some form of higher power, between 1.5 and 4%. I've had good luck receiving stations from 50 miles out with the portable Insignia radio, with the headphone cable strung up across my car's rear view mirror, which as you can imagine is a far from optimal way to receive low powered FM signals. Birmingham stinks for HD, probably due to terrain. But St. Louis is awesome. LA is not bad, Albuquerque is useless unless you're on the wrong side of Sandia for some reason. And so forth and so on.
I think the radios are finally maturing now, and that may help, too. The newest gen Insignia portable (with the gray cladding) is a bulldog with HD. It bites and never seems to let go. I no longer get tons of dropouts in my area near the TX sites, just the occasional blip due to terrain shadowing or being too close to the transmitter sites. That's a far cry from the performance of the earlier all-black cladded models, which couldn't hold on to HD when in motion for nothin'.