As much as many of you will hate to admit it, a Hispanic targeted format would probably be the best thing for 103.7, as the heavily Hispanic east end of Houston is where the signal is best. Or, as I have beaten the drum before, a spot for the first Vietnamese language station on FM (a niche format could possibly overcome signal liabilities.)
Reminder: Hispanics=growth market, Anglos=shrinking market. Not a political statement, just the facts.
That aside, I don't see the current format lasting. Yes, they play a lot of material that doesn't usually get airplay, but I'm afraid Houston simply isn't the right market for Adult Alternative. And the muddled imaging doesn't help...why haven't they dumped the "Jack" references and come up with a new name? Yeah, I know that PPM's make branding somewhat irrelevant, but you would think Cumulus would do a better job of positioning the station.