What could have made anyone think that two signals could occupy the same spectrum at the same time without any mutual interference?
Perhaps a dim awareness of quadrature AM, coupled with a complete lack of understanding of it?
Two AM signals in quadrature—sans carrier—can be recovered with minimal crosstalk under good, or even fair, receiving conditions. But accurate reconstruction of the intelligence depends on a reference for the oscillator that supplies the replacement carriers—whether continuous, as in FM stereo, or in short bursts, as in analog color TV.
Obviously, on the AM broadcast band there would be no reference signal for accurately restoring the carriers, so that suggestion is unworkable.
NTSC analog color TV used two chrominance subcarriers in quadrature—specifically, two VSM signals with suppressed carriers—to transmit signals which allowed receivers to recover the red and blue video signals. These recovered signals could then be electronically subtracted from the luminance signal to recover the green signal. Carriers for the VSM chrominance signals could be could be restored with a high degree of accuracy by a keyed oscillator controlled by the color burst signal transmitted during the horizontal blanking interval.
This worked reasonably well most of the time, but multipath problems—airplane flutter, or walking too close to (or worse yet, actually touching) the “rabbit ears” on a color TV—could yield some interesting, if annoying, effects on the color.
The “FMX” system of noise reduction proposed by CBS in the 1980’s also used quadrature subcarriers (but with full symmetrical sidebands, not VSM). The second DSB/SC signal, in quadrature with the original difference signal, carried heavily compressed L‒R audio.
FMX was discredited when Amar Bose pointed out how badly the separation of the two subcarriers would be compromised by the constantly shifting effects of multipath in mobile reception. The most important point was the fact that, under multipath conditions, the presence of a second subcarrier in quadrature with the standard difference signal would seriously degrade reception not only on FMX receivers, but even on those not equipped for FMX. (See
http://tech.mit.edu/V109/N7/bose.07n.html.)
Broadcast Technology Partners (the investment group that had acquired the FMX patents after Larry Tisch shut down CBS Labs in 1986) threatened to sue Bose and MIT, but it was just so much bluster. Bose must have been somewhat cowed by the experience, and that may explain his reluctance to take on “HD” radio—which, at least initally, had the support of several industry interests, all of them larger and wealthier than the speculators who had acquired the FMX technology.
Nevertheless, we can surmise his private opinion of “HD” from that fact that his firm, which was among the first to jump on the Compact Disc bandwagon, has yet to introduce its first “HD” radio product.