My guess, and I am sure David will confirm to some degree, is that Dance/LGBTQ formats are niche formats on terrestrial radio and seem to not have huge followings in nearly all of the US markets that they have existed. Here in San Diego, both Audacy and iHeart kept their LGBTQ/Dance heavy formats (Channel Q and Pride Radio) on HD subchannels, even though they terminated most of their other HD formats. I believe they remained in several other markets as well, but I'm not sure how well they do. Up until a couple of months ago, Channel Q sounded awful, with sound quality sounding like 48kbps, commercials running on top of each other and the IDs being for the 97.1 feed in LA. I've noticed that the audio quality is much better now.
Other than that, there has never been a purely dance station in San Diego, although the community might support one. When Channel 933 started, they were a dance-heavy CHR, but are now mainstream, as is Z90.3, which is a bit more rhythmic. In a significantly smaller market like Palm Springs, there probably was not enough of an audience to sustain three LGBTQ/Dance stations, so now they are down to one. When I was a kid in the 70s and 80s, it was not uncommon to have two, or even three CHR stations in a market, maybe two rock stations, two or three AC stations, sometimes two Oldies/Classic Hits stations and maybe a couple of Country stations. Now there are very few markets that have any more than one or two stations in each format. You might have two CHR stations, some markets have two Alternative stations, but other formats are pretty much one each. You might have more choices if you are in the fringe of multiple markets, like LA/Inland Empire or LA/San Diego or San Francisco/San Jose/Monterey, but there are less choices today I believe.
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