Honestly, I can't fault Press for wanting to reach into the Atlantic City market and challenge WFPG. That station has been dominant in the ratings for an extremely long time, and I think The Breeze would be able to chisel away at it and get some pretty strong ratings for itself just as it did against WOBM. No one ever thought that station could get knocked down several pegs and topped by a competitor, but it did.
The way it stands now, there's far too much overlap between WWZY and WBHX. If a move like this were to take place, it would eliminate this overlap, maintain the same level of coverage, and expand it much further south. The Breeze is the flagship station of Press, so why not try to make it stronger?
As for Hit ... I don't think having Kiss on at 99.7 will be a factor in whether it succeeds or fails. Kiss is a jukebox, a personality-free automaton playing the same old songs time and time again. Even if Equity makes an effort to promote the station, do you honestly think people are going to choose it over other Top 40 stations that have some semblance of interactivity? Highly unlikely.