What I've heard about The Gamut's all-digital testing is that the digital coverage area during the day has far exceeded the usable analog signal.
Much of that is because the digital modulation is one solid data stream causing the transmitter to output 100% continuous power all the time, rather than AM modulation which reaches peak power when an audio peak of 100% occurs. Digital modulation is measured RMS, where AM modulation is peak.
Whether the audio quality is better is subjective, though. A clean analog AM broadcast with full 10 kHz frequency response sounds pretty good on the right radio. The problem is finding those tiny areas where the signal is clean AND finding a radio that doesn't neuter the audio to reduce noise. I'm behind the wheel of a Hyundai sedan while travelling at the moment and the AM section sounds like it might not even be making 5 kHz.
That's the problem with making the argument that AM could sound as good as FM stereo...IF there was the perfect radio and transmission setup. There is neither, nor has there ever been. Complete fallacy. If nobody makes perfect AM tuners, and not every AM station has a broad-banded antenna system and perfectly matched transmitter, then the point is moot.
Signal to noise ratio for AM reception because of various levels of terrestrial and atmospheric noise has always been worse than analog FM. Just one of the advantages to digital transmission, is the receiver doesn't listen for noise, only digital packets, so terrestrial noise is completely eliminated from the equation.
The maximum audio frequency response for AM is 10Khz. Just as with FM, tuner filters start rolling off audio at about 7Khz in order to reduce noise. Just as AM, no FM tuner ever made has a brick wall 15Khz low pass filter. Most roll-off high frequencies around 13Khz. To that point, to the AM fans who claim MW sounds as good as FM, I argue that they need their hearing tested, because there is a big audible difference between 7Khz and 13Khz.
With HD, you get better frequency response and a low noise floor, but the trade-off is digital artifacts in the audio. From what little I've heard, even in all-digital mode it's pretty harsh sounding.
Most of the digital artifacts are because the station is playing audio files that are either Mp3s, or some other lossy encoded format that isn't compatible with not only the Ibquity decoding algorithm, but probably even with the station digital audio processor. Other than WWFD, most stations don't pay attention to that kind of thing.