Let's respond to Savage point by point.
1)-First HD doesn't cost 300+ dollars. For half of this year, one was available for 50 dollars. Now it's 100. A third, or a sixth of what you implied was the price of admission.
2)-Millions of Americans are willing to PAY MONTHLY SUBSCRIPTION FEES for increased programming choices. It's a no-brainer that inproved choice FOR FREE is a strong selling point, if stations can both provide strong choices, AND PROMOTE THE DAMN THINGS! With many of the largest markets having neither an oldies, not a country station on analog fm or am, OF COURSE THE CHOICE OF FORMATS IS AN IMPORTANT FACTOR! Consolidation has led to FAR fewer choices, from far fewer programmers! The Greensboro/Winston Salem/High Point market has no fulltime classical station, since WFDD (along with many other NPR outlets) went talk. Beginning in October, classical returns on their HD2, and jazz and other eclectic forms of music are coming on HD3 after the first of the year. Choices UNAVAILABLE WITHOUT HD! A VERY tangible benefit!
3)-Blends are transparent when (as most will do) listening to HD1. Certainly no more bothersome than when your radio blends to mono (as they certainly do OFTEN in many parts of the country!). And this isn't a factor in urban/suburban areas where most people live. And contrary to what many think, listeners DO NOT TUNE OUT IN LARGE NUMBERS DURING STOPSETS! This is one of the things we've already learned from PPM (portable people meters) used by Arbitron. It's not as if satellite or internet radio are REALLY without commercials! They're just handled differently. But the important selling point isn't sound quality. It's ALWAYS programming! People don't watch tv, or listen to the radio. They watch and listen to PROGRAMS they like. Success of ANY broadcast technology is always contingent upon the quality and quantity of the content, not the pristine nature of it's delivery.
4)-A good point, actually Savage. Ibiquity needs to "take a bath" for a while to keep prices low. And manufacturers need to put decent amplifiers and speakers in HD radios so they actually sound good. Think Tivoli, not GPX!
5)-Also correct. Money must change hands. Think those big displays in the supermarket appear there because the store owner really likes the new brand of noodles, or soup? Palms must be greased to have anything displayed, and sold aggressively.