The Keg has often been in a tough spot as they are somewhere in between The X (mostly 90s to now) and The Eagle (mostly 70s & 80s, but more 90s are gradually being worked in). Some of you might remember when The Keg was briefly not called The Keg. It was called "92.1 The Zone" in 2003. They tried to go head to head with 104.9 The X and lasted about a year.
For the first time in what seems like a long time, The Keg beat The X in the Fall '11 book. Not sure if it is a hiccup or a trend. But maybe Cumulus is smelling blood and thinks they can beat them in the long run by playing more current rock music. One thing that I would be cautious about is the fact that rock music has been in a downtrend in its mass appeal over the last 15 or so years. The number of great rock bands/songs has been limited in my opinion and there hasn't been what I would call a "revolution" in rock music since the era centered from 1992-96.
Alternative/modern rock has sounded a bit fragmented these days between all the 90s gold, indie-pop (some which crosses over to top 40 smashes i.e. Foster The People, Gotye and Fun) and the current harder rock product that can also be played on active rock stations.
A possible direction one could do would be to take it into a more active rock direction, some of these stations are branded as "pure rock". Establish Foo Fighters, Red Hot Chili Peppers, Shinedown, Five Finger Deathpunch, Avenged Sevenfold, Chevelle, Seether, Godsmack, Theory Of A Deadman, Disturbed, etc. as core current artists. Still play a good dose of the more familiar harder classic rock (Guns N Roses, Van Halen, Metallica, AC/DC, Ozzy, Led Zeppelin, etc.) to honor the heritage of the station and to keep it mass appeal rock. Drop the classic "hits" such as Fleetwood Mac, The Eagles, Pat Benatar, John Melloncamp, Phil Collins, Boston, Journey, REO Speedwagon, etc. Defer those to your sister Warm...many of that type of classic hits are already being played on Eagle, Magic, or the new 101.5 anyways.