Let's take this in order, shall we?
1. AM Stereo failed miserably. By the time Motorola was chosen, it was too late for any audience to care. Music listening had already migrated to FM by then. Leonard Kahn was a big reason AM stereo was delayed. He filed nuisance lawsuits in an attempt to force the Commission to delay a choice of something other than his system. If you want to place blame, one needs to look no further than Leonard. Combine all the aforementioned, with poor and inconsistent audio quality that couldn't come close to matching FM stereo and AM Stereo was doomed from the get-go.
2. AM Stereo has no place anymore, not that it had one to begin with. There are no new receivers being sold or provided in vehicles. No distribution=no interest. AM listeners are a dying breed, literally.
3. You're right about one thing: Consumers don't care where the data comes from to their cell phones. All they know is how to operate it. But, going back to what a consumer would want or not; if the an average consumer heard music on AM, even in stereo, it would be rejected because of the poor overall quality and excessive noise floor.
Regarding your comment about having heard AM Stereo, I absolutely have. I've installed (and removed) more systems over the years when AM stereo was sort of a thing for broadcasters, than you have, guaranteed. I was even involved in some of the original testing and evaluation of ISB and CQUAM. Compared with digital audio sources you can even store or stream via your phone these days? AM stereo sounds horrible.
Years ago I worked with Bob Carver on development of his rather high end AM/FM stereo tuner. As Bob put it, 'AM stereo was a complete waste of a year in R&D'. Much of that statement was because of the lack of consistency in stereo exciter interface to the various transmitter models. Differences in antenna systems. Program Directors insisting on running asymmetrical modulation.
So honestly, you can self-revise history all you want. AM stereo was/is a complete failure across the board.
Now, can we please return to the 21st Century and talk about AM digital? If you want to have a debate, let's at least debate something real and in current times.